On January 2,2014,Mahoney Sales issued $10,000 in bonds for $10,900.They were 5-year bonds with a stated rate of 4%,and pay semiannual interest payments.Mahoney Sales uses the straight-line method to amortize the bond premium.After the first interest payment on June 30,2014,what was the bond carrying amount?

Question

Quizplus · Accepted Answer

B) Calculations: $10,000 + ($900 - $90) = $10,810

On January 2,2014,Mahoney Sales Issued $10,000 in Bonds for $10,900