Dollar amount of discount or premium amortization

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Reference no: EM13790446

Grider Industries, Inc. issued $6,000,000 of 8% debentures on May 1, 2010 and received cash totaling $5,323,577. The bonds pay interest semi annually on May 1 and November 1. The maturity date on the bonds is November 1, 2018. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 10%.

Instructions:

Calculate the total dollar amount of discount or premium amortization during the first year (5/1/2010 through 4/30/2011) these bonds were outstanding. (Show computations and round to the nearest dollar.)

Reference no: EM13790446

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Dollar amount of discount or premium amortization : Grider Industries, Inc. issued $6,000,000 of 8% debentures on May 1, 2010 and received cash totaling $5,323,577. The bonds pay interest semi annually on May 1 and November 1. The maturity date on the bonds is November 1, 2018. Calculate the total dol..

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