Indigo Company sells 10% bonds having a maturity value of $2,250,000 for $2,087,794. The bonds are dated
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Indigo Company sells 10% bonds having a maturity value of $2,250,000 for $2,087,794. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.
Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.)
| Schedule of Discount Amortization Straight-Line Method | ||||||||
Year | Cash Paid | Interest Expense | Discount Amortized | Carrying Amount of Bonds | ||||
| Jan. 1, 2017 | $ | $ | $ | $ | ||||
| Jan. 1, 2018 | ||||||||
| Jan. 1, 2019 | ||||||||
| Jan. 1, 2020 | ||||||||
| Jan. 1, 2021 | ||||||||
| Jan. 1, 2022 | ||||||||
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