Info:

Bramble Company sells 9% bonds having a maturity value of $1,850,000 for $1,713,250. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

Question:

1) Determine the effective-interest rate.

2) Set up a schedule of interest expense and discount amortization under the effective-interest method.

Here is the work I have so far, please help. I have trouble calculating the interest expense, discount amortized, and carrying amount of bonds:

Your answer is incorrect. Try again. Determine the effective interest rate. (Round answer to o decimal places, e.g. 18%) The effective interest rate 11 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 o decimal places, e.g. 38,548.) Schedule of Discount Amortization Effective Interest Method Cash Carrying Interest Discount aid Amortized nt of Bonds Year Expense Jan. 1, 2017 o 11713.250 Jan. 1, 2018 166500 Jan. 1, 2019 L 166500 Jan. 1, 2020 E L 166 500 T Jan. 1, 2021 L 166500 T Jan. 1, 2022 166500