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

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. Set up a schedule of interest expense and discount amortization under the effective-interest method. Transcribed Image Text: Schedule of Discount Amortization
Effective-Interest Method
Interest
Interest
Discount
Carrying
Amount of Bonds
Payable
Expense
Amortized
$4
2$
2$
1855816.00
200000
222697.92
1878513.92
200000
225421.6704
200000
200000
200000
2000000
%24
%24

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