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On January 1,2018,Westside Sales Issued $16,000 in Bonds for $19,800

Question 126

Multiple Choice

On January 1,2018,Westside Sales issued $16,000 in bonds for $19,800.These are eight-year bonds with a stated interest rate of 10% that pay semiannual interest.Westside Sales uses the straight-line method to amortize the bond premium.After the first interest payment on June 30,2018,what is the bond carrying amount? (Round your intermediate answers to the nearest dollar.)


A) $19,800
B) $19,562
C) $16,238
D) $16,000

Correct Answer:

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