Calculate the total dollar amount of discount or premium


Grider Industries, Inc. issued $10,000,000 of 8% debentures on May 1, 2014 and received cash totaling $8,872,628. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is November 1, 2022. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%.
Calculate the total dollar amount of discount or premium amortization during the first year (5/1/14 through 4/30/15) these bonds were outstanding.

Date Interest
Expense
Cash
Interest
Discount
Amortized
Carrying
Value of Bonds
5/1/14


$
11/1/14
5/1/15
Total

$

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Accounting Basics: Calculate the total dollar amount of discount or premium
Reference No:- TGS0696900

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