Lawrence Co. issued $300,000 of 6% (0.06), 10-year bonds payable on January 1, 2012, when the market

Question:

Lawrence Co. issued $300,000 of 6% (0.06), 10-year bonds payable on January 1, 2012, when the market interest rate was 7% (0.07). The company pays interest annually at year-end. The issue price of the bonds was $278,929.

Requirement
1. Create a spreadsheet model to prepare a schedule to amortize the bonds. Use the effective interest method of amortization.