Swifty Company sells 10% bonds having a maturity value of $2,600,000 for $2,503,904. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

A. Swifty Company sells 10% bonds having a maturity value of $2,600,000 for $2,503,904. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

B. Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.)

year	cash paid	intrest expense	discount amortized	carrying amunt of bonds
2017	0			2503904
2018	260,000
2019	260,000
2020	260,000
2021	260,000
2022	260,000