Sunland Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2024 and received cash totaling $15,704,552. 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 O decimal places, e.g. 5,275.) Date Cash Interest Interest Expense Discount Amortized Carrying Value of Bonds
Sunland Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2024 and received cash totaling $15,704,552. 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 O decimal places, e.g. 5,275.) Date Cash Interest Interest Expense Discount Amortized Carrying Value of Bonds
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunland Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2024 and received cash totaling $15,704,552. 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 O decimal places, e.g. 5,275.)
Date
5/1/24
11/1/24
5/1/25
Total
tA
$
Cash
Interest
eTextbook and Media
708000
708000
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LA
$
Interest
Expense
$
tA
tA
$
Discount
Amortized
ta
$
Carrying
Value of Bonds
157045
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