On January 1, 2018, BoomTown Industries issued $1,250,000 of 7% bonds, due in 15 years, with interest payable semi-annua

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On January 1, 2018, BoomTown Industries issued $1,250,000 of 7%
bonds, due in 15 years, with interest payable semi-annually on June
30 and December 31 each year. The market rate of interest was 9% at
the time the bonds were issued.
Required: Prepare a bond amortization schedule using Excel.
See additional instructions below.
Required items in Excel:( the excel document should follow the
instruction below and please include a picture of it)
1. Calculate issue price showing the calculations for each cash
flow stream – interest and the lump sum.
2. Input cells, which can be hard-keyed, are required for the
following items: Issue price, Face value, Stated interest rate,
Market interest rate, and Interest payment per period. Interest
rates should be prorated to match the frequency of interest
payments.
3. The amortization table should have the five column titles we
used in class: Date, Cash Interest, Interest Expense, Change, and
Carrying Value
4. The entire amortization table should be calculations, no
hard-keyed numbers.
a. Carrying Value should equal the input cell for issue price on
January 1, 2018
b. Cash interest should equal the Interest payment per period
input cell.
c. Interest expense should be a formula – remember to lock the
cell reference to interest rate.
d. Change should be a formula calculating the change in the
proper direction.
e. The carrying value; the first carrying value amount on 1/1/18
should link to the input cell. From then on the carrying value is a
formula.