Question 2

Sage Company sells10% bonds having a maturity value of $2,450,000for $2,273,375. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

Determine the effective-interest rate.(Round answer to 0 decimal places, e.g. 18%.)

The effective-interest rate

%

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.)

Question 2 Sage Company sells 10% bonds having a maturity value of $2,450,000 for $2,273,375. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate % LINK TO TEXT 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 Year Cash Paid Interest Expense $ Jan. 1, 2017 Jan. 1, 2018 Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Carrying Amount of Bonds Discount Amortized $ $ $