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On January 1, a company issued and sold a $300,000, 5%, 10-year bond payable, and received proceeds of $293,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the first interest payment is:

Respuesta :

Answer: $293,350

Explanation:

The carrying value of the bonds immediately after the first interest payment will be the addition of the received proceed and the ammortized discount. This will be:

= $293,000 + $350

= $293,350

Note that the ammortized discount was calculated as:

= ($300000 - $293000)/20

= $7000/20

= $350

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