Calculating and recording bonds when stated rate and market rate are different [15-20 min]...

Calculating and recording bonds when stated rate and market rate are different [15-20 min]

On January 1, 2012, Trikel, Corp., issued $600,000 of 8.375%, five-year bonds payable when the market interest rate was 10%. Trikel pays interest annually at year-end. The issue price of the bonds was $563,040.

Requirement

1. Create a spreadsheet model to measure interest and bond discount amortization based on the following table: