PB10-7 (Supplement 10B) Recording Bond Issue, Interest Payments (Effective-Interest Amortization), and Early Bond Retirement [LO 10-S2]

15 2.50 points PB10-7 (Supplement 10B) Recording Bond 1ssue, Interest Payments (Effective-Interest Amortization), and Early Bond Retirement LEO 10-S2] issued 100 bonds each with a face value of $,ooo, a stated interest 1, 2015, Methodical Manufacturing On Janua rate of 6 percent paid anmually on December 31, and a maturity date of December 31, 2017. On the issue date, the market interest rate was 5.50 percent, so the total proceeds from the bond issue were $101,347. Methodical uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year Required 1. Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the Carrying value equals face value of the bond in the last pe Interest expense in the last period wilTresult in the amount in Premium Amortized equaling Premium on Bonds Payable) Changes During the Period Ending Bond Liability Balances Premium Premium on value Amortized Bonds Payable Bonds Payable Carrying Interest Period Cash Paid Ended Expense 01/01/15 12/31/15 12/31/16 12/31/17