1. Use Excel to replicate the effective interest method schedules in Illustration 14.6 (Schedule of Bond Discount Amortization) and 14.8 (Schedule of Bond Premium Amortization) found on pages 14-10 and 14-11 in the textbook.

ILLUSTRATION 14.8 Bond Premium Amortization Schedule Evermaster records the issuance of its bonds at a premium as follows. January 1, 2020 Cash 108,530 Premium on Bonds Payable 8,530 Bonds Payable 100,000 Evermaster records the first interest payment and amortization of the premium as follows. July 1, 2020 Interest Expense 3,256 Premium on Bonds Payable 744 Cash 4,000 Evermaster should amortize the discount or premium as an adjustment to interest expense over the life of the bond in such a way as to result in a constant rate of interest when applied to the carrying amount of debt outstanding at the beginning of any given period