Ayayai Corp. issued $350,000, 6%, 20-year bonds on January 1, 2017, for $312,921

Question

Ayayai Corp. issued $350,000, 6%, 20-year bonds on January 1, 2017, for $312,921. This price resulted in an effective-interest rate of 7% on the bonds. Interest is payable annually on January 1. Ayayai uses the effective-interest method to amortize bond premium or discount.
Prepare the schedule using effective-interest method to amortize bond premium or discount of Ayayai Corp.. (Round answers to 0 decimal places, e.g. 5,250.)

INTEREST EXPENSE
TO BE RECORDED

INTEREST PERIODS INTEREST TO BE PAID

INTEREST EXPENSE
TO BE RECORDED

DISCOUNT AMORTIZATION UNAMORTIZED DISCOUNT BOND CARRYING VALUE ISSUE DATE ? ? ? ? ? 1 ? ? ? ? ? 2 ? ? ? ? ?

Explanation / Answer

INTEREST PERIODS INTEREST TO BE PAID INTEREST EXPENSE DISCOUNT AMORTIZATION UNAMORTIZED DISCOUNT BOND CARRYING VALUE Issue date 37079 312921 1 10500 10952 452 36627 313373 2 10500 10968 468 36159 313841

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