Required information E10-14 (Static) (Supplement 10A) Recording the Effects of a Discount Bond Issue and First Interest Payment and Preparing a Discount Amortization Schedule (Straight-Line Amortization) [LO 10-S1] (The following information applies to the questions displayed below.] On January 1, when the market interest rate was 9 percent, Seton Corporation completed a $200,000, 8 percent bond issue for $187,163. The bonds pay interest each December 31 and mature in 10 years. Seton amortizes the bon discount using the straight-line method.