How do I prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method ?
Here is my problem: On Jan.1,2012, Morgan company acquires $300,000 of Nicklaus, Inc., 9%bonds at a price of $278,384. The interest is payable every Dec.31, and the bonds mature Dec.31,2014. The investment will provide Morgan company a 12% yield. The bonds are classified as held-to-maturity.