Question

Exercise 14-6 Indigo Company sells 9% bonds having a maturity value of $2,400,000 for $2,140,464. 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 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Date	Cash	Interest	discount	Carrying
	Received	Expense	amortized	amount of
				bonds
1/1/2017				2,140,464.00
1/1/2018	216000	267907	51907	2192371
1/1/2019	216000	267907	51907	2244278
1/1/2020	216000	267907	51907	2296186
1/1/2021	216000	267907	51907	2348093
1/1/2022	216000	267907	51907	2400000