Assume the same information as E14.6.

Instructions

Set up a schedule of interest expense and discount amortization under the eff ective-interest method.

In E14.6.

Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2020, and mature January 1, 2025. 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.)