In: Accounting
King State Bank purchased $500,000 of ten-year, 7.5% Lucille Corporation bonds on July 1, 2019.
Interest on the bonds is paid on January 1 and July 1 of each year. The market rate on the bonds was 8%.
The selling prices of the bonds at 12/31/19 and 12/31/20 were 102 and 101 respectively.
Required:
1. Prepare an amortization schedule for the entire life of the bonds using Excel.