Crafty Corporation received $471,068 of cash upon issuance of 500, $1,000 par value bonds. Each bond has a stated rate of 4% 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 5%.

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
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