Effective-interest method for debt

Each row records opening net carrying amount, coupon cash, effective interest, and the resulting change in carrying amount. Round only display. Retain full precision in the schedule and use the final tie as a control, not a plug target.

Discount debt usually accretes upward; premium debt usually amortizes downward. Issuance costs can make net carrying amount and effective expense differ from a price-only schedule, so name the basis used in every column.

Hold the effective rate constant

ASC 835-30-35-3 defines periodic amortization as the difference between interest cost under the interest method and nominal interest on the debt. ASC 835-30-45-3 places that amortization in interest expense.

Assume opening net carrying amount is $1,840,345.10, coupon cash is $60,000, and the solved periodic effective rate is 4.195237 percent. First-period expense is about $77,207. The difference increases carrying amount by about $17,207. Keep full precision in later rows. At maturity, cumulative amortization should bridge opening basis to face without a hidden plug.