Bonds Issued at a Discount (Effective Interest)
Crafty Corporation issued bonds that will mature on December 31, 2030, 7 years after the issuance of the bonds. Interest is paid annually on December 31. The following information pertains to the bond issuance:
DATA
Face value of the bonds	$500,000
Selling price of the bonds	$471,068
Stated interest rate	4%
Market rate of interest	5%
REQUIRED:
Prepare the amortization table through using the effective interest rate method. (Note: Rounding differences may occur in spreadsheet software.)
Period	Cash Payment (Credit)	Interest Expense (Debit)	Discount on Bonds Payable (Credit)	Discount on Bonds Payable Balance	Carrying Value
At issue
12/31/24
12/31/25
12/31/26
12/31/27
12/31/28
12/31/29
12/31/30
	Formulas
Period	Cash Payment (Credit)	Interest Expense (Debit)	Discount on Bonds Payable (Credit)	Discount on Bonds Payable Balance	Carrying Value
At issue
12/31/24
12/31/25
12/31/26
12/31/27
12/31/28
12/31/29
12/31/30