You must make a copy before using this sheet. This is the master. File $($right under the title$)$ then make a copy to save to your own Google Drive or Download as Microsoft Excel.

The Google Sheet should be shared with me $($

rziwiski$7443$@student.elgin.edu$)$ with editor privilege & notify; the Excel worksheet can be placed in the Assignment folder $($in the module$)$ in D$2$L$.$

Project #$4-$ Bond Amortization

The ECC District is preparing to sell bonds to improve their campus. The cost of the project is $$950,000$ and the bond market has recently been unpredictable. They are offering a $$950,000$ bond with a $6\%$ interest rate payable annually. Maturity will be in $10$ years.

They need to consider $2$ possible outcomes and need information for both.

Case #$1$: The market interest rate at time of issuance is $6\mathrm{.}5\%.$ Proceeds from sale are $$850,000.$ Method of amortization is Straight Line.

Case #$2$: The market interest rate at time of issuance is $5\mathrm{.}50\%.$ Proceeds from sale are $$986,750.$ Method of

Outcomes: $($to be demonstrated in this project$)$

A

Complete amortization calculations using both the straight line and effective interest methodologles.

B

Use technology to record and summarize information used in business

decisions.

Round ALL answers to $2$ decimal places.

REQUIRED FOR POINTS:

$\backslash$table$[[11,1.,$Create a master$/$reference table for Case #$1$ with all the required information needed to prepare a schedule and record the journal entries$],[12,2,$Create a bond amortization schedule $($Straight$-$line method$)$ using the master table for all $10$ years. Include all columns on the schedule needed for the interest journal entry and the individual accounts and calculated carrying value that would be presented on the Balance Sheet.$],[13,$Link$/$reference the amortization schedule calculations to the master table; use Excel$/$Sheets math functionality fully.$],[14,3,$Create a master$/$reference table for Case $42$ with all the required information needed to prepare a schedule and record the journal entries.$],[$hi$,4,$Create a bond amortization schedule $($Effective method$)$ using the master table for all $10$ years. Include all columns on the schedule needed for the interest journal entry and the individual accounts and calculated carrying value that would be presented on the Balance Sheet.$],[16,$Link$/$reference the amortization schedule calculations to the master table; use Excel$/$Sheets math functionality fully.$],[17,$Using the schedules created:$],[18,,$For CASE #$1],[19.,5,$Record the journal entry for the issuance of the bond.$],[20,6,$Record the journal entry for ONLY the year one interest payment.$],[21,7,$Record the journal entry if the bond is retired on lan $1,$ Year $8$ with a price of $97.],[22,$Link$/$reference the journal entries to the amortization schedules; use Excel$/$Sheets math functionality fully.$],[23,,$For CASE H$2],[24,8,$Record the journal entry for the issuance of the bond.$],[25,9,$Record the journal entry for ONLY the year one interest payment.$],[25,10,$Record the journal entry if the bond is retired on Jan $1,$ Year $6$ with a price of $102.],[27,$Link$/$reference the journal entries to the amortization schedules; use Excel$/$Sheets math functionality fully.$],[25,11.,$Explain the difference between the $2$ methods of amortization and why a business would choose one over the other.$]]$

Use Learning resource

Ebook Ch $10.$