Preparing an Amortization Schedule$$Effective Interest Method

On January $1$ of Year $1,$ Williams Inc. issued $4-$year, $$50,000,5\%$ bonds, priced to yield $6\%,$ with cash interest payable semiannually on June $30$ and December $31.$ The company amortizes the bond discount using the effective interest method.

Required

Provide an amortization schedule of interest and discount amortization for the $4-$year bond term.

Note: Round amounts to two decimal places and use the rounded numbers for future calculations.

Note: Include any net rounding difference for Bond Payable, Net in the discount amortization amount for Dec. $31,$ Year $4.$

Note: Do not use negative signs.

Effective Interest Method$$Discount

Date Cash Interest Expense Discount Amortization Bonds Payable, Net

Jan. $1,$ Year $1$ Answer $1$

$48,245\mathrm{.}08$

June $30,$ Year $1$ Answer $2$

$1,250$

Answer $3$

$1,447\mathrm{.}35$

Answer $4$

$0$

Answer $5$

$48,442\mathrm{.}43$

Dec. $31,$ Year $1$ Answer $6$

$1,250$

Answer $7$

$1,453\mathrm{.}27$

Answer $8$

$0$

Answer $9$

$48,645\mathrm{.}7$

June $30,$ Year $2$ Answer $10$

$1,250$

Answer $11$

$1,459\mathrm{.}37$

Answer $12$

$0$

Answer $13$

$48,855\mathrm{.}07$

Dec. $31,$ Year $2$ Answer $14$

$1,250$

Answer $15$

$0$

Answer $16$

$0$

Answer $17$

$0$

June $30,$ Year $3$ Answer $18$

$1,250$

Answer $19$

$0$

Answer $20$

$0$

$0$

Dec. $31,$ Year $3$ Answer $21$

$1,250$

Answer $22$

$0$

Answer $23$

$0$

$0$

June $30,$ Year $4$ Answer $24$

$1,250$

Answer $25$

$0$

Answer $26$

$0$

$0$

Dec. $31,$ Year $4$ Answer $27$

$1,250$

Answer $28$

$0$

Answer $29$

$0$

$0$

Total

$10,000$

$4,359\mathrm{.}99$

$0$