On January 1, 2021, Bobcat Company sold 10% bonds having a face value of $300,000 to yield 12% market rate The bonds are dated January 1, 2021 and mature in 5 years, with interest payable semiannually on July 1 and January 1 of each year, starting July 1, 2021. Instructions Prepare complete bond amortization schedules for Bobcat using the Excel templates on the following tabs Tab 1: Assume Bobcat allocates interest and unamortized discount or premium on the EFFECTIVE-INTEREST (El) basis. Make sure to fill in dates as well Tab 2: Assume Bobcat allocates interest and unamortized discount or premium on the STRAIGHT-LINE (SL) basis. Make sure to fill in dates as well Notes: Compute the present value of the bond using Excel formulas. All highlighted cells should be formulas. For example, cash interest payment should have som 3 1 Questions Tab: Using your tables, answer the related questions on the question tab cash Interest Payment Interest Expense Amortization Amount Carrying Value Of Bonds Date 7/1/2021 1/1/2022 7/1/2022 1/1/2023 7/1/2023 1/1/2024 7/1/2024 1/1/2025 7/1/2025 1/1/2026 Payment Number Start 1 2 3 4 5 G $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15.000 $15,000 $15,000 $15,000 2 9 10 $150,000 SO SO Cash Interest Payment Interest Expense Amortization Amount Carrying Value Of Bonds Payment Number Start 1 Date 2 3 4 5 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 6 7 8 9 10 $150,000 $0 SO USE the information from Tabs 1 and 2 to answer the following two questions. From the bond issuer's perspective, (1) Which method of amortization causes interest expense to be higher in the beginning of the bond's term? Explain why? (2) Which method would be preferred to smooth income? Explain why