Prepare an amortization schedule that determines interest

Reference no: EM13394272

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.

Reference no: EM13394272

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