On January 2, 2014, Omni Industries Inc. issued $4,000,000 of 8.5-percent, 5-year bonds when the market interest rate was 10 percent. Omni Industries pays interest annually on December 31. The issue price of the bonds was $3,772,553.

Required
Create a spreadsheet model to prepare a schedule to amortize the discount on these bonds. Use the effective-interest method of amortization. Round to the nearest dollar, and format your answer as follows:

Transcribed Image Text:

10% Interest Unamortized Bond Interest Payment Expense Amortization Balance Discount Discount Carrying Amount Date 5 Jan. 2,2014 6 Dec. 31, 2014 7 Dec. 31, 2015 8 Dec. 31, 2016 9 Dec. 31, 2017 10 Dec. 31, 2018 $227447 $3,772,553 s -4,000,000*.085 F5*.010 C6B6 -E5-D6