Problem
On January 1, 2020, Ehrlich Corporation issued 9%, 8-year bonds with a face amount of $1,850,000 at 98. Interest is payable annually on January 1. Instructions the following entries: record the issuance of the bonds on 1/1/20 first annual interest accrual on 12/31/20 amortization, assuming that the company uses straight-line amortization on 12/31/20 payment of interest on 1/1/21 What is the unamortized balance of the discount account at 1/1/21? What is the carrying value of the bond at 1/1/21?