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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Grider Industries, Inc. issued $10,000,000 of 8% debentures on May 1, 2014 and received cash totaling $8,872,628. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is November 1, 2022. 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 (5/1/14 through 4/30/15) these bonds were outstanding.
| Date | Interest Expense |
Cash Interest |
Discount Amortized |
Carrying Value of Bonds |
| 5/1/14 | Â | Â | Â | $![]() |
| 11/1/14 | ![]() |
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| 5/1/15 | ![]() |
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| Total | Â | Â | $![]() |
Â
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