Amortization schedules of interest expense

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Reference no: EM1345343

E14-6 (Amortization SchedulesâStraight-Line)
Spencer Company sells 10% bonds having a maturity value of \$3,000,000 for \$2,783,724. The bonds are dated January 1, 2012, and mature January 1, 2017. Interest is payable annually on January 1.

Set up a schedule of interest expense and discount amortization under the straight-line method.

E14-7 (Amortization Scheduleâ?"Effective-Interest)
Assume the same information as E14-6.

Set up a schedule of interest expense and discount amortization under the effective-interest method. (Hint: The effective-interest rate must be computed.)

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