XYZ Corporation issued $500,000, 8%, 5 year bonds on January 1, 2013. These bonds will pay interest semi-annually on June 30 and December 31. When the bonds were sold, the effective rate of interest was 10%. XYZs year end is December 31. Prepare this amortization schedule.

AMORTIZATION SCHEDULE Premium/Discount Carrying Value rrying value (Bal. owed) Date Cash PaymentInterest Exp Amortization Totals200,000 238,610 38,610