Question: Assume the same information as in E1412. Minor Inc. sells 10% bonds having a maturity value of $3 million for $2,783,724. The bonds are dated

Assume the same information as in E14–12.
Minor Inc. sells 10% bonds having a maturity value of $3 million for $2,783,724. The bonds are dated January 1, 2011, and mature on January 1, 2016. Interest is payable annually on January 1.
Instructions
Set up a schedule of interest expense and discount amortization under the effective interest method. (Hint: The effective interest rate must be calculated.)

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