On January 1, 2019, Calvert Company issues 10%, $100,000 face value bonds for $103,629.90, a price to yield 8%. The bonds mature on December 31, 2020. Interest is paid semiannually on June 30 and December 31.

Required:

1.	Prepare a bond interest expense and premium amortization schedule using the straight-line method.
2.	Prepare a bond interest expense and premium amortization schedule using the effective interest method.
3.	Prepare the journal entries to record the interest payments on June 30, 2019, and December 31, 2019, using both methods.

round answer to 2 decimal places

CALVERT COMPANY

Bond Interest Expense and Premium Amortization Schedule

Straight-Line Method

1. Prepare a bond interest expense and premium amortization schedule using the straight-line method.

1	Date	Cash Credit	Interest Expense Debit	Unamortized Premium Debit	Book Value of Bonds
2	01/01/19
3	06/30/19
4	12/31/19
5	06/30/20
6	12/31/20

2. Prepare a bond interest expense and premium amortization schedule using the effective interest method.

CALVERT COMPANY

Bond Interest Expense and Premium Amortization Schedule

Effective Interest Method

1	Date	Cash Credit	Interest Expense Debit	Unamortized Premium Debit	Book Value of Bonds
2	01/01/19
3	06/30/19
4	12/31/19
5	06/30/20
6	12/31/20

3a. Prepare the journal entries to record the interest payments on June 30, 2019, and December 31, 2019, using the straight-line method.

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
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5
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3b. Prepare the journal entries to record the interest payments on June 30, 2019, and December 31, 2019, using the effective interest method.

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6