Question - On December 31, 2012, Laraboo Corp. issues 11%, 10-year convertible bonds payable with a maturity value of $4,000,000. The semi-annual interest rate is 12%, and the issue price of the bonds is 94.265. Laraboo Corp. amortizes bonds by the effective e-interest rate method.
Requirements: Prepare an effective method amortization table for the first four semi-annual interest periods.
Note: Show in table (B). Interest expense 6% of preceding bond carrying amount how you got the figures for each interest period.