Discount amortization under the effective-interest method

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Reference no: EM131222697

Devon Harris Company sells 9% bonds having a maturity value of $2,082,000 for $1,856,853. The bonds are dated January 1, 2014, and mature January 1, 2019. Interest is payable annually on January 1.

Determine the following:

A. The effective-interest rate

B. Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round answers to 0 decimal places, e.g. 38,548.)

Reference no: EM131222697

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