Riverbed Company sells 8% bonds having a maturity value of $3,000,000 for $2,772,550. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.

Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548.)

Riverbed Company sells 8% bonds having a maturity value of $3,000,000 for $2,772.550. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. (a) Your answer is correct Determine the effective-interest rate. (Round answer to O decimal places, eg. 18%.) The effective-interest rate 10 % eTextbook and Media Attempts: 1 of 3 used (b) Set up a schedule of interest expense and discount amortization under the effective interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to decimal places, e.g. 38,548.) Schedule of Discount Amortization Effective-Interest Method Interest Discount Expense Amortized Interest Payable Carrying Amount of Bonc Year $ 240000 $ $ $ 240000 240000 Jan. 1, 2020 Dec. 31. 2020 Dec. 31, 2021 Dec. 31 2022 Dec. 31. 2023 Dec. 31. 2024 240000 240000 240000