Marigold Company sells 8% bonds having a maturity value of $2,460,000 for $2,273,490....
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Marigold Company sells 8% bonds having a maturity value of $2,460,000 for $2,273,490. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Your answer is correct. Determine the effective interest rate. (Round answer to O decimal places, e.g. 18%.) The effective interest rate 10 % e Textbook and Media . Your answer is partially correct. Set up a schedule of interest expense and discount amortization under the effective interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548.) Schedule of Discount Amortization Effective-Interest Method Interest Payable Interest Expense Discount Amortized Carrying Amount of Bonds Year Jan. 1. 2020 $ 0 $ 0 0 2273490 Dec. 31, 227349 18651 2292141 2020 Dec. 31, 2021 246000 229214 16786 2308927 Dec. 31, 2022 246000 230893 15107 2324034 Dec. 31. 2023 246000 232403 13597 2337631 Dec. 31. 2024 246000 233763 12237 2460000
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