When Patey Pontoons issued 6% bonds on January 1, 2016, with a face amount of $600,000, the market yield for bonds of similar risk and maturity was 7%. The bonds mature December 31, 2019 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

3. Prepare an amortization schedule that determines interest at the effective rate each period. Semiannual Bond Interest Expense Discount Amortization Interest Cash Interest Carrying Value Period-End 01/01/2016 06/30/2016 12/31/2016 06/30/2017 12/31/2017 06/30/2018 12/31/2018 06/30/2019 12/31/2019 Total