Exercise 14-7 Pearl Company sells 10% bonds having a maturity value of $1,900,000 for $1,763,025. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Correct answer. Your answer is correct. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate Entry field with correct answer 12 % SHOW SOLUTION LINK TO TEXT Partially correct answer. Your answer is partially correct. Try again. Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.)

Exercise 14-7 Pearl Company sells 10% bonds having a maturity value of $1,900,000 for $1,763,025. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Your answer is correct. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate The effective interest rate 12 % % SHOW SOLUTION LINK TO TEXT Your answer is partially correct. Try again. Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Your answer is partially correct. Try again. Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Schedule of Discount Amortization Effective-Interest Method Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds Year Jan. 1, 2017 17,63,025 $ 1 x Jan. 1, 2018 1.90,000 000 21,563 17,84,588 Jan. 1, 2019 T 1,90,000 2,14,151 24,151 18,08,739 Jan. 1, 2020 T 1,90,000 2,17,049 27,049 18,35,787 Jan. 1, 2021 1,90,000 2,20,294 30,294 18,66,082 Jan. 1, 2022 1,90,000 2,23,918 33,918 19,00,000