On November 30, 2018 Carefree Insurance Inc issued callable $800,000, 3%, 10-year bonds at 105. Interest is paid every year on May 31 and November 30. December 31 is Carefree's year end date and it follows IFRS.

Based on the information above, please develop an amortization schedule for Carefree for 2018 to 2028 using Excel. You can use the Excel template shown in class.

Based on your amortization schedule, please choose the correct answers for the following questions.

Issue Price of the Bond is 760,000800,000840,000761,904

The bond's yield is 2.43%1.22%1.5%3%

Coupon Rate of the Bond is 2.43%1.22%1.5%3%

The bond is sold (issued) at DiscountPremium

The bond premium / discount will be amortized using Straight line methodEffective interest rate method

Create the Journal Entry to record interest expense for Dec 31, 2018 below.

DebitCredit Bond PayableCashInterest ExpenseNote PayableInterest Payable 3,57912,0002961,7042,00020,41420,4211,7798,51810,200

DebitCredit Bond PayableCashInterest ExpenseNote PayableInterest Payable 3,57912,0002961,7042,00020,41420,4211,7798,51810,200

DebitCredit Bond PayableCashInterest ExpenseNote PayableInterest Payable 3,57912,0002961,7042,00020,41420,4211,7798,51810,200

Interest Expense Recorded on May 31, 2019 will be 3,57912,0002961,7042,00020,41420,4211,7798,51810,200

Interest Expense for 2019 will be 3,57912,0002961,7042,00020,41420,4211,7798,51810,200

Carrying Value (Book Value) of the Bond at Dec 31, 2019 will be 839,704836,421834,599836,118