On January 1, 2017, Bobcat Company sold 12% bonds having a maturity value of $600,000 for $645,489, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017 and mature January 1, 2022 (5 year term), with interest payable December 31 each year.

Instructions Prepare complete bond amortization schedules for Bobcat using the Excel

1: Assume Bobcat allocates interest and unamortized discount or premium on the EFFECTIVE-INTEREST (EI) basis.

2: Assume Bobcat allocates interest and unamortized discount or premium on the STRAIGHT-LINE (SL) basis.

Notes: Compute present values using Excel formulas. The labels for the chart are as follows,

Date, Payment number, Cash Interest Payment, Interest Expense, Change in debt balance, Debt balance