E 14-7 Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. The effective rate of interest is 12%. Prepare a schedule of interest expense and discount amortization under the effective-interest method. E 14-9 on January 1, 2014, Mischa Auer Company issued $4,000,000 face value of 13%, 20 year bonds at $4,300,920, at an yield of 12%. Auer uses the effective interest method to amortize bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. Prepare the journal entries for (a) the issue of the bonds, (b) the payment of interest and amortization of premium on June 30 and December 31, 2017. BE 14-14 McCormick Corporation issued a 4 year, $40,000, 5% note to Greenbush Company on January 1, 2017 and received a computer that normally sells for $31,495. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare McCormick's journal entries for (a) the issue of note and (b) interest payment