Devon Harris Company sells 8% bonds having a maturity value of $2,744,000 for $2

Question

Devon Harris Company sells 8% bonds having a maturity value of $2,744,000 for $2,348,349. The bonds are dated January 1, 2014, and mature January 1, 2019. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Discount Amortization Straight-Line Method Year Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds Jan. 1, 2014 $Entry field with correct answer Dec. 31, 2014 $Entry field with correct answer $Entry field with incorrect answer $Entry field with incorrect answer Entry field with incorrect answer Dec. 31, 2015 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Dec. 31, 2016 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Dec. 31, 2017 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Dec. 31, 2018 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer

Explanation / Answer

Devon Harris Company Details Amt $ Bond Par value          2,744,000 Bond issue price          2,348,349 Bond discount             395,651 Maturity in years                    5.00 SL amortization per year          79,130.20 Interest @8%         219,520.00 Schedule of amortization

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