General Investment Co.(GIC)purchased bonds on January 1,2012.GIC's accountant has projected the following amortization schedule from purchase until maturity:
$$\begin{array} { r r r c c }
{ \begin{array} { c }
\text { Date } \

\end{array} } & \begin{array} { c }
\text { Cash } \
\text { Paid }
\end{array} & \begin{array} { c }
\text { Interest } \
\text { Expense }
\end{array} & \begin{array} { c }
\text { Increase in } \
\text { Carrying Value }
\end{array} & \begin{array} { c }
\text { Carrying } \
\text { Value }
\end{array} \
1 / 1 / 12 & && & \$ 194,758 \
6 / 30 / 12 & \$ 7,000 & \$ 7,790 & \$ 790 & 195,548 \
12 / 31 / 12 & 7,000 & 7,822 & 822 & 196,370 \
6 / 30 / 13 & 7,000 & 7,855 & 855 & 197,225 \
12 / 31 / 13 & 7,000 & 7,889 & 889 & 198,114 \
6 / 30 / 14 & 7,000 & 7,925 & 925 & 199,039 \
12 / 31 / 14 & 7,000 & 7,961 & 961 & \$ 200,000
\end{array}$$
GIC purchased the bonds:

Question

General Investment Co.(GIC)purchased bonds on January 1,2012.GIC's accountant has projected the following amortization schedule from purchase until maturity: 
$$\begin{array} { r r r c c } 
 { \begin{array} { c } 
\text { Date } \

\end{array} } & \begin{array} { c } 
\text { Cash } \
\text { Paid }
\end{array} & \begin{array} { c } 
\text { Interest } \
\text { Expense }
\end{array} & \begin{array} { c } 
\text { Increase in } \
\text { Carrying Value }
\end{array} & \begin{array} { c } 
\text { Carrying } \
\text { Value }
\end{array} \
1 / 1 / 12 & && & \$ 194,758 \
6 / 30 / 12 & \$ 7,000 & \$ 7,790 & \$ 790 & 195,548 \
12 / 31 / 12 & 7,000 & 7,822 & 822 & 196,370 \
6 / 30 / 13 & 7,000 & 7,855 & 855 & 197,225 \
12 / 31 / 13 & 7,000 & 7,889 & 889 & 198,114 \
6 / 30 / 14 & 7,000 & 7,925 & 925 & 199,039 \
12 / 31 / 14 & 7,000 & 7,961 & 961 & \$ 200,000
\end{array}$$
GIC purchased the bonds:

Quizplus · Accepted Answer

The Answer of General Investment Co.(GIC)purchased bonds on January 1,2012.GIC's accountant has projected the following amortization schedule from purchase until maturity: 
$$\begin{array} { r r r c c } 
 { \begin{array} { c } 
\text { Date } \

\end{array} } & \begin{array} { c } 
\text { Cash } \
\text { Paid }
\end{array} & \begin{array} { c } 
\text { Interest } \
\text { Expense }
\end{array} & \begin{array} { c } 
\text { Increase in } \
\text { Carrying Value }
\end{array} & \begin{array} { c } 
\text { Carrying } \
\text { Value }
\end{array} \
1 / 1 / 12 & && & \$ 194,758 \
6 / 30 / 12 & \$ 7,000 & \$ 7,790 & \$ 790 & 195,548 \
12 / 31 / 12 & 7,000 & 7,822 & 822 & 196,370 \
6 / 30 / 13 & 7,000 & 7,855 & 855 & 197,225 \
12 / 31 / 13 & 7,000 & 7,889 & 889 & 198,114 \
6 / 30 / 14 & 7,000 & 7,925 & 925 & 199,039 \
12 / 31 / 14 & 7,000 & 7,961 & 961 & \$ 200,000
\end{array}$$
GIC purchased the bonds:

General Investment Co GIC Purchased the Bonds: A)At Par

General Investment Co GIC Purchased the Bonds:
A)At Par