On November 1,2009,Davis Company issued $30,000,ten-year,7% bonds for $29,100.The bonds were dated November 1,2009,and interest is payable each November 1 and May 1.How much is the amount of straight-line discount amortization on each semi-annual interest date?

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Quizplus · Accepted Answer

The straight-line discount amortization ($45) = Discount on bonds payable ($30,000 - $29,100) F1F1F1S1F1F1F10 20 semi-annual interest payments.

On November 1,2009,Davis Company Issued $30,000,ten-Year,7% Bonds for $29,100