Question

E 14-6 L01) (Amortization Schedule Straight-Line) Devon Harris Company sells 10% bonds having a maturity value o$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 

Instructions 

Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to the nearest cent.)

E 14-7 L01) (Amortization Schedule-Effective-Interest) Assume the same information as E14-6.

Instructions 

Set up a schedule of interest expense and discount amortization under the effective-interest method. (Hint: The effective-interest rate must be computed.)

Answer 1

The answer has been presented in the supporting sheet. All the parts have been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.