Sheridan Industries, Inc. issued $13,500,000 of 8% debentures on May 1, 2020 and received cash totaling $11,978,048. 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 4/30O/21) these bonds were outstanding. (Round answers to 0 decimal places, eg. 5,275.) Interest Cash Discount Carrying Value of Bonds Date Expense Interest Amortized 5/1/20 %24 11/1/20 $ 24 24 5/1/21 Total 24

Sheridan Industries, Inc. issued $13,500,000 of 8% debentures on May 1, 2020 and received cash totaling $11,978,048. 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 4/30O/21) these bonds were outstanding. (Round answers to 0 decimal places, eg. 5,275.) Interest Cash Discount Carrying Value of Bonds Date Expense Interest Amortized 5/1/20 %24 11/1/20 $ 24 24 5/1/21 Total 24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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