Question
Idaho Industries, Inc. issued $12,900,000 of 8% debentures on May 1, 2024 and received cash totaling $11,445,690. The bonds pay interest semiannually on May 1
Idaho Industries, Inc. issued $12,900,000 of 8% debentures on May 1, 2024 and received cash totaling $11,445,690. 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 rate of 10%. Calculate the total dollar amount of discount or premium amortization during the first year (5/1/24 through 4/30/25) these bonds were outstanding. (Round answers to 0 decimal places, e.g. 5,275.)
Date | Cash Interest | Interest Expense | Discount Amortized | Carrying Value of Bonds | ||||
---|---|---|---|---|---|---|---|---|
5/1/24 | $enter a dollar amount | |||||||
11/1/24 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | enter a dollar amount | ||||
5/1/25 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
Total | $enter a total amount |
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