On November 1, 20A, Duval Company sold (issued) 300, $1,000, ten-year, 7% bonds at 97. The bonds were dated November 1, 20A, and interest is payable each November 1 and May 1. What would be the amount of discount amortization at each semi-annual interest date (assume straight-line amortization)?

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The bonds were issued at 97, meaning they were sold at 97% of their face value, resulting in a discount. The total discount is $9,000 (300 bonds x $1,000 x 3%). Over 10 years, with interest payable semi-annually, there are 20 periods. The discount amortization per period is $9,000 / 20 = $450.

On November 1, 20A, Duval Company Sold (Issued) 300, $1,000