Toebee Corporation issued bonds with a part value of $500,000 and a five-year life on May 1,2015.The contract rate is 7%.The bonds pay interest on October 31 and April 30.They were issued at a price of $489,734 when the market rate was 7.5%.Toebee Corporation's year end is December 31.
Required:
1)Prepare an amortization table using the effective interest method.
2)Prepare an amortization table using the straight-line method
"3)Contrast the two methods,commenting on the following:
a.Period interest expense
b.Total interest expense
c.Discount amortized at maturity
d.Amortized cost at maturity"

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The Answer of Toebee Corporation issued bonds with a part value of $500,000 and a five-year life on May 1,2015.The contract rate is 7%.The bonds pay interest on October 31 and April 30.They were issued at a price of $489,734 when the market rate was 7.5%.Toebee Corporation's year end is December 31.
Required:
1)Prepare an amortization table using the effective interest method.
2)Prepare an amortization table using the straight-line method
"3)Contrast the two methods,commenting on the following:
a.Period interest expense
b.Total interest expense
c.Discount amortized at maturity
d.Amortized cost at maturity"

Toebee Corporation Issued Bonds with a Part Value of $500,000