On January 1, 2017, when the market interest rate was 9 percent, Selton Corporation completed a $200,000, 8 percent bond issue for $187,163. The bonds were dated January 1, 2017, pay interest each December 31, and mature in ten years on December 31, 2026. Seton amortizes the bond discount using the straight-line method.

Required:

1. Prepare the journal entry to record the bond issuance.

2. Prepare the journal entry to record the interest payment on December 31, 2017.

3. Prepare a bond discount amortization schedule for these bonds. Round calculations to the nearest dollar.