Devon Harris Company sells9% bonds having a maturity value of $2,154,000for $1,921,067. The bonds are dated January 1, 2014, and mature January 1, 2019. Interest is payable annually on January 1.

Determine the effective-interest rate.

The effective-interest rate

%

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.)

Schedule of Discount Amortization Effective-Interest Method
Year	Cash Paid	Interest Expense	Discount Amortized	Carrying Amount of Bonds
Jan. 1, 2014	$	$	$	$
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2016
Dec. 31, 2017
Dec. 31, 2018

Answer rating: 100% (QA)

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