Q5.

HW chapter 10 Saved Help Save & Exit Subr Check my work 00 Required information [The following information applies to the questions displayed below.) Part 2 of 2 On January 1, when the market interest rate was 10 percent, Seton Corporation completed a $140,000, 9 percent bond issue for $131,392. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. 12.5 points eBook 3. Prepare a bond discount amortization schedule for these bonds. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Hint Print References Changes During the Period Ending Bond Liability Balances Period Ended Interest Expense Cash Paid Discount Amortized Bonds Payable Discount on Bonds Payable Carrying Value Start 131,392 8,608 8,069 13,139 539 Year 1 End Year 2 End 140,000 140,000 140,000 12,600 12,600 131,931 140,000 HW chapter 10 i Saved Help Save 8 Required information Changes During the Period Ending Bond Liability Balances Part 2 of 2 Period Ended Interest Expense Cash Paid Discount Amortized Bonds Payable Discount on Bonds Payable Carrying Value Start 12.5 points 8,608 8,069 131,392 131,931 Year 1 End 13,139 539 Year 2 End Year 3 End 12,600 12,600 12,600 12,600 12,600 140,000 140,000 140,000 140,000 140,000 140,000 140,000 eBook Year 4 End Hint Year 5 End Print Year 6 End 12,600 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 References Year 7 End Year 8 End 12,600 12,600 Year 9 End Year 10 End 12,600 12,600 140,000 140,000 140,000