Total dollar amount of discount or premium amortization

Assignment Help Accounting Basics

Reference no: EM13142508

Benson Industries, Inc. issued $5,000,000 of 8% debentures on May 1, 2004 and received cash totaling $4,436,315. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is November 1, 2012. 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 (5/1/04 through 4/30/05) these bonds were outstanding. (Show computations and round to the nearest dollar.)

Reference no: EM13142508

Questions Cloud

Determine cost recovery deduction of automobile : Hans purchased a new passenger automobile on August 17, 2009, for $40,000. During the year the car was used 40% for business and 60% for personal use. Determine his cost recovery deduction for the car for 2009.

How many moles contain each of the following : How many moles contain each of the following? 3.75 x 10^24 molecules CO2

Compute the arithmetic mean and median : The following table provides the weight in grams of a sample of 50 bags produced in one hour by a single machine: Compute the arithmetic mean and median.

What amount is reportable as interest income : Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $175 in interest on a savings account at the Moss National Bank and $1,475 in interest on California Municipal Bonds. Elmer and Elsie filed a joint inco..

Total dollar amount of discount or premium amortization : Calculate the total dollar amount of discount or premium amortization during the first year (5/1/04 through 4/30/05) these bonds were outstanding. (Show computations and round to the nearest dollar.)

What is the final volume : An oxygen tank contains oxygen at a pressure of 70 kPa. When the pressure drops to 36 kPa, the temperature increases from 300 K to 350 K. If the initial volume is 9 L, what is the final volume?

What is amount of outstanding checks at the end of november : In the month of November, Hickcox Company Inc. wrote checks in the amount of $9,072. In December, checks in the amount of $11,987 were written. What is amount of outstanding checks at the end of November?

Computing the cost recovery deduction : Doug purchased a new factory building on January 15, 1987, for $4,000,000. On March 1, 2009, the building was sold. Determine the cost recovery deduction for the year of the sale assuming he did not use the MACRS straight-line method.

Classifications within net income : Discuss how the authoritative literature addresses comprehensive income. Define three classifications within net income and give an example of each.

User Account

All Pages