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What is the amount of bond premium amortization

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Reference no: EM13972558

Assume that a bond is issued with the following characteristics: Date of bonds: January 1, 2005; maturity date: January 1, 2010; face value: $200,000; face interest rate: 10 percent paid semiannually (5 percent per period); market interest rate: 8 percent (4 percent per semiannual period); issue price: $216,222; bond premium is amortized using the effective interest method of amortization. 

What is the amount of bond premium amortization for the June 30, 2005, adjusting entry? 

Reference no: EM13972558

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