Preparing a Bond Amortization Table (Effective Interest Rate)} On December 31, 2018, The Rock Restaurant borrowed ($

Question:

Preparing a Bond Amortization Table (Effective Interest Rate)}

On December 31, 2018, The Rock Restaurant borrowed $\$ 254,500$ by issuing three-year, $7 \%$ bonds with a face amount of $\$ 250,000$. Interest is payable annually on December 31 . The company uses the effective interest rate method of amortization.

Required:

Prepare an amortization table using the following column headings:

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