Bonds Issued at a Premium (Effective Interest)

Haley Industries issued $170,000 of 7%, 7-year bonds on January 1, 2024, with a $9,490 premium. 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.

Open spreadsheet

Required:

Prepare the amortization table using the effective interest rate method. Round interest expense to a dollar and round final year interest expense amount to complete the amortization.

Haley Industries Amortization Table
Period	Cash Payment (Credit)	Interest Expense (Debit)	Premium on Bonds Payable (Debit)	Premium on Bonds Payable Balance	Carrying Value
At issue				$fill in the blank 2	$fill in the blank 3
12/31/24		fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
12/31/25	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12	fill in the blank 13
12/31/26	fill in the blank 14	fill in the blank 15	fill in the blank 16	fill in the blank 17	fill in the blank 18
12/31/27	fill in the blank 19	fill in the blank 20	fill in the blank 21	fill in the blank 22	fill in the blank 23
12/31/28	fill in the blank 24	fill in the blank 25	fill in the blank 26	fill in the blank 27	fill in the blank 28
12/31/29	fill in the blank 29	fill in the blank 30	fill in the blank 31	fill in the blank 32	fill in the blank 33
12/31/30	fill in the blank 34	fill in the blank 35	fill in the blank 36	fill in the blank 37	fill in the blank 38