On March 1, 2010, Darby Corporation sold 102 of its 9 percent, $1,000 bonds for a price of 96 plus accrued interest. The accrued interest amounted to $1,000. If a balance sheet were to be prepared at the end of the day, March 1, 2010, the carrying value reported for the bonds payable would be

Question

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The selling price of the bonds is $96 plus $1,000 accrued interest, which amounts to $97,000. The bond face value is $1,000 each, and 102 bonds were sold, resulting in a total bond face value of $102,000. However, the carrying value reported on the balance sheet is the selling price of the bonds, which is $97,000. Therefore, the answer is B) $97,920.

On March 1, 2010, Darby Corporation Sold 102 of Its