Calculation of straight line amortization

Trial Bal Amortized Unamortized Carrying

Date Account Debit (Credit) Acount Trial Bal Beg ADJ Ending Date amount Discount Value
Recorded journal entries and post to the 6/30 Cash 918,484 918,484 1/1 41,516 198,484
trail balance Accounts receivable 250,000 250,000 6/30 1,384 40,132 199,868 1
1/1 Issued bonds which pay Accounts Payable (20,000) (20,000) 12/31 1,384 38,748 201,252 2
interest semiannually Bonds Payable (240,000) (240,000) 6/30 1,384 37,364 202,636 3
Number of years 15 12/1 Discount on Bonds Payable 41,516 41,516 12/31 1,384 35,981 204,019 4
Face value 240,000 Common Dividend payable 0 0 6/30 1,384 34,597 205,403 5
Issue price 198,484 Retained Earnings (250,000) (250,000) 12/31 1,384 33,213 206,787 6
Interest rate on bond 6% Sales (700,000) (700,000) 6/30 1,384 31,829 208,171 7
Market rate 8% Cost of goods sold 0 0 12/31 1,384 30,445 209,555 8
6/30 Record bond interest and Bond interest expense 0 0 6/30 1,384 29,061 210,939 9
straight line amortization Wages Expense 0 0 12/31 1,384 27,677 212,323 10
of interest 0 0 0 6/30 1,384 26,293 213,707 11
12/31 Record bond interest and Net income (700,000) 0 (700,000) 12/31 1,384 24,910 215,090 12
straight line amortization
6/30 1,384 23,526 216,474 13
of interest
12/31 1,384 22,142 217,858 14
6/30 1,384 20,758 219,242 15
12/31 1,384 19,374 220,626 16
6/30 1,384 17,990 222,010 17
12/31 1,384 16,606 223,394 18
6/30 1,384 15,223 224,777 19
12/31 1,384 13,839 226,161 20
6/30 1,384 12,455 227,545 21
12/31 1,384 11,071 228,929 22
6/30 1,384 9,687 230,313 23
12/31 1,384 8,303 231,697 24
6/30 1,384 6,919 233,081 25
12/31 1,384 5,535 234,465 26
6/30 1,384 4,152 235,848 27
12/31 1,384 2,768 237,232 28
6/30 1,384 1,384 238,616 29
12/31 1,384 0 240,000 30
 Calculation of straight line amortization
Trial Bal Amortized Unamortized Carrying
Date Account Debit (Credit) Acount Trial Bal Beg ADJ Ending Date amount Discount Value
Recorded journal entries and post to the 6/30 Cash 918,484 918,484 1/1
trail balance Accounts receivable 250,000 250,000 6/30 1
1/1 Issued bonds which pay Accounts Payable (20,000) (20,000) 12/31 2
interest semiannually Bonds Payable (240,000) (240,000) 6/30 3
Number of years 15 12/1 Discount on Bonds Payable 41,516 41,516 12/31 4
Face value 240,000 Common Dividend payable 0 0 6/30 5
Issue price 198,484 Retained Earnings (250,000) (250,000) 12/31 6
Interest rate on bond 6% Sales (700,000) (700,000) 6/30 7
Market rate 8% Cost of goods sold 0 0 12/31 8
6/30 Record bond interest and Bond interest expense 0 0 6/30 9
straight line amortization Wages Expense 0 0 12/31 10
of interest 0 0 0 6/30 11
12/31 Record bond interest and Net income (700,000) 0 (700,000) 12/31 12
straight line amortization
6/30 13
of interest
12/31 14
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12/31 30