On January 1,2015,Carter Sales issued $15,000 in bonds for $14,300.They were 8-year bonds with a stated rate of 9%,and pay semiannual interest.Carter Sales uses the straight-line method to amortize the bond discount.After the second interest payment on December 31,2015,what was the bond carrying amount? Round your intermediate answers to nearest dollar.)

Question

Quizplus · Accepted Answer

The bond discount is $15,000 - $14,300 = $700
The discount amortization per year is $700/8 = $87.50
The bond carrying amount after the first interest payment on June 30, 2015 (half-year mark) is:
$14,300 + $87.50 = $14,387.50 (rounded to $14,388)
The bond carrying amount after the second interest payment on December 31, 2015 is:
$14,388 + $87.50 = $14,475 (rounded to $14,388)

On January 1,2015,Carter Sales Issued $15,000 in Bonds for $14,300