Swifty Industries, Inc. issued $12,300,000 of 8% debentures on May 1, 2020 and received cash totaling $10,913,332. 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 $
Swifty Industries, Inc. issued $12,300,000 of 8% debentures on May 1, 2020 and received cash totaling $10,913,332. 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 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Swifty Industries, Inc. issued $12,300,000 of 8% debentures on May 1, 2020 and received cash totaling $10,913,332. 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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