The Accounting Club recently issued $1,500,000 of 10- year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.

Required:

Create a stright line amortization and effective interest schedule in excel. PLEASE SHOW THE FORMULAS THAT WERE USED TO CALCULATE EACH VALUE.

Amortization Schedule- Stright Line

Year Cash Paid Amortization Interest Exp. Disc./Prem Carrying Value

0

1

2

3

4

5

6

7

8

9

10

11

12

Amortization Schedule- Effective Interest Method

Year Cash Paid Amortization Interest Exp. Disc./Prem Carrying Value

0

1

2

3

4

5

6

7

8

9

10

11

12