On January 1, 2017, Toland Sales issued $30,000 in bonds for $22,300
These are eight-year bonds with a stated interest rate of 12% pay semiannual interest. Toland Sales uses the straight-line method to amortize the bond discount. What is the bond carrying amount after the first interest payment on June 30, 2017? (Round your intermediate answers to the nearest dollar.)
A) $30,000
B) $18,931
C) $22,781
D) $26,631
C .Bond Payable $30,000
Less: Discount on Bonds Payable
[$7,700 - ((($30,000 - $22,300 ) / 8 )x (6/12 ))] 7,219
Bond Carrying Amount $22,781
You might also like to view...
Economists often use ________ as an indicator of substitutability
A) cross-elasticity of demand B) conjoint analysis C) perceptual mapping D) demand forecasting
Because of time delays between receiving inventory and making the journal entry
a. liabilities are usually understated b. liabilities are usually overstated c. liabilities are usually correctly stated d. none of the above
Which of the following is least likely to be a core competency of a fast-food restaurant chain?
a. Cost reduction leading to low-cost product b. Inventory control to ensure adequate product availability c. Flexibility to allow customers many customized product offerings d. Quick preparation of product
Assume the following: LN(S) and LN(Q) have a correlation coefficient of 0.40, S(0 ) = 60, Q(0 ) = 60, r = 0.05, ?s = 0.30 ?Q = 0.25, and dividend = 0. Using formula 20.39, what is the price of a claim that pays?
A) $243.96 B) $322.96 C) $479.96 D) $532.96