2. Fill in the amortization table for each scenario using the effective interest rate method. Roll over the headings for help with the calculations.

Enter all amounts as positive numbers. If required, in your computations round the interest expense to the nearest dollar. (Note: Due to rounding issues, some amounts have been provided for you in the tables.) Assume the annual stated rate is 8% and effective rate is 13%.

Semi-annual Period	Cash	Interest Expense	Discount on Bonds Payable	Discount on Bonds Payable Balance	Carrying Value
	-	-	-	12,248	130,752
1	5,720	8,499	2,779	9,469	133,531
2
3				3,357
4			3,357	-	143,000

Assume the stated rate is 8% and effective rate is 6%.

Semi-annual Period	Cash	Interest Expense	Premium on Bonds Payable	Premium on Bonds Payable Balance	Carrying Value
	-	-	-	5,316	148,316
1	5,720	4,449	1,271	4,045	147,045
2
3				1,388
4			1,388	-	143,000