Bonds Issued at a Discount (Effective Interest)

Crafty Corporation received $755,341 of cash upon issuance of 800, $1,000 par value bonds. Each bond has a stated rate of 5% 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 6%.

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.

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