Wildhorse Industries, Inc. issued $15,300,000 of 8% debentures on May 1, 2024 and received cash totaling $13,575,121. 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.)
Wildhorse Industries, Inc. issued $15,300,000 of 8% debentures on May 1, 2024 and received cash totaling $13,575,121. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject :- Accounting
Transcribed Image Text:Wildhorse Industries, Inc. issued $15,300,000 of 8% debentures on May 1, 2024 and received cash totaling $13,575,121. 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.)
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