Windsor Company sells 8% bonds having a maturity value of $1,400,000 for $1,244,771. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.
Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.)
1) The effective-interest rate:-
2) Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) from 2017 to 2021 cashpaid interst expense discount amortized carrying amount of bond