On January 1,2018,Wonderland Sales issued $30,000 in bonds for $22,300.These are eight-year bonds with a stated interest rate of 12% and pay semiannual interest.Wonderland Sales uses the straight-line method to amortize the bond discount.What is the bond carrying amount after the first interest payment on June 30,2018? (Round your intermediate answers to the nearest dollar.)

Question

Quizplus · Accepted Answer

The bond discount is $30,000 - $22,300 = $7,700.

The annual amortization of the bond discount is $7,700 / 8 = $962.50.

After the first six months, the amortization of the bond discount is $962.50 / 2 = $481.25.

The carrying amount of the bond after the first interest payment is:

$22,300 + $481.25 = $22,781.

Therefore, the correct choice is C.

On January 1,2018,Wonderland Sales Issued $30,000 in Bonds for $22,300