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Oriole Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2020 and received cash

Oriole Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2020 and received cash

Oriole Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2020 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, 2025. 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


$

manish jayant 09-Sep-2020

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