Preparing an Amortization ScheduleStraight-Line Interest Method

On January 1, 2020, Williams Inc. issued 8-year, $200,000, 5% bonds, priced to yield 6%, with cash interest payable semiannually on June 30 and December 31. The company amortizes the bond discount using the straight-line interest method.

Provide an amortization schedule of interest and discount amortization for the 8-year bond term.

• Note: Round amounts to two decimal places. Use rounded amounts for subsequent calculations in the schedule.
• Note: Include any net rounding difference for Bond Payable, Net in the discount amortization amount for Dec. 31, 2027.

Effective Interest MethodDiscount

Date	Cash	Interest Expense	Discount Amortization	Bonds Payable, Net
Jan. 1, 2020				Answer
June 30, 2020	Answer	Answer	Answer	Answer
Dec. 31, 2020	Answer	Answer	Answer	Answer
June 30, 2021	Answer	Answer	Answer	Answer
Dec. 31, 2021	Answer	Answer	Answer	Answer
June 30, 2022	Answer	Answer	Answer	Answer
Dec. 31, 2022	Answer	Answer	Answer	Answer
June 30, 2023	Answer	Answer	Answer	Answer
Dec. 31, 2023	Answer	Answer	Answer	Answer
June 30, 2024	Answer	Answer	Answer	Answer
Dec. 31, 2024	Answer	Answer	Answer	Answer
June 30, 2025	Answer	Answer	Answer	Answer
Dec. 31, 2025	Answer	Answer	Answer	Answer
June 30, 2026	Answer	Answer	Answer	Answer
Dec. 31, 2026	Answer	Answer	Answer	Answer
June 30, 2027	Answer	Answer	Answer	Answer
Dec. 31, 2027	Answer	Answer	Answer	Answer
Total	Answer	Answer	Answer

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