Bonds Issued at a Discount (Effective Interest)

Sicily Corporation issued \(\$ 500,000\) in \(6 \%\) bonds (payable on December 31, 2028) on December 31,2018 , for \(\$ 402,440\). Interest is paid on June 30 and December 31. The market rate of interest is \(9 \%\).

\section*{Required:}

Prepare the amortization table using the effective interest rate method. (Note: Round to the nearest dollar.)

Bonds Issued at a Discount (Effective Interest) Cornerstone Exercise