FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Marigold Industries, Inc. issued $ 12,600,000 of 8% debentures on May 1, 2020 and received cash totaling $ 11,179,511. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is November 1, 2028. 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 (5/1/20 through 4/30/21) these bonds were outstanding. (Round answers to 0 decimal places, e.g. 5,275.)

Date Interest
Expense
Cash
Interest
Discount
Amortized
Carrying
Value of Bonds
5/1/20       $
11/1/20 $ $ $  
5/1/21        
Total     $  
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