Bonds Issued at a Discount $($Effective Interest$)$

Crafty Corporation received $$758,349$ of cash upon issuance of $800,$$$1,000$ par value bonds. Each bond has a stated rate of $7\%$ and will mature on December $31,2030,7$ years after the issuance of the bonds. Interest is paid annually on December $31.$ The market rate of interest is $8\%.$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answer in the question below.

Open spreadsheet

Required:

Prepare the amortization table using the effective interest rate method.

Note: Round interest expense to a dollar and round final year interest expense amount to complete the amortization.

Crafty Corporation

Amortization Table

$\backslash$table$[[$Period$,\backslash$table$[[$Cash Payment$],[($Credit$)]],\backslash$table$[[$Interest Expense$],[($Debit$)]],\backslash$table$[[$Discount on Bonds$],[$Payable $($Credit$)]],\backslash$table$[[$Discount on Bonds$],[$Payable Balance$]],$Carrying Value$],[$At issue,,,,,vdots