Crystal Corporation_Bonds Payable

$11.00

Description

3. On January 1,
2014, Crystal Corporation issued a $100,000 10-year bonds at 11%. Interest is
paid annually on December 31. The bonds were sold for $94,349 and the yield is
12%.

Required

1. Prepare an
amortization schedule that determines interest at the effective interest rate.

2. Prepare an
amortization schedule by the straight-line method.

3. Prepare the
journal entries to record interest expense on December 31, 2016, by each of the
two methods.

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