(Amortization ScheduleStraight-Line) Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.

Instructions

Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to the nearest cent.) prepare journal entries for the issuance of the bonds, 2 years of interest payments, and retirement at maturity.

Assume the same information,Using 12% effective (market) interest rate, prepare journal entries for issuance of the bonds, 2 years of interest payments, and retirement at maturity;