(Solution) - On January 1 2013 when the market interest rate was -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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On January 1, 2013, when the market interest rate was 9 percent, Seton Corporation completed a $200,000, 8 percent bond issue for $187,163. The bonds were dated January 1, 2013, pay interest each December 31, and mature in 10 years on December 31, 2022. 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, 2013.
3. Prepare a bond discount amortization schedule for these bonds. Round calculations to the nearest dollar.