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A corporation issues $13 million in bonds on January 1, 2023. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Cash Paid Interest Expense Date 01/01/2023 06/30/2023 $780,000 $813,594 12/31/2023 780,000 815,946 06/30/2024 780,000 818,462 12/31/2024 780,000 821,155 Increase in Carrying Value $33,594 35,946 38,462 41,155 What is the carrying value of the bonds as of December 31, 2024? Carrying Value $11,622,778 11,656,372 11,692,318 11,730,780 11,771,935

A corporation issues $13 million in bonds on January 1, 2023. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Cash Paid Interest Expense Date 01/01/2023 06/30/2023 $780,000 $813,594 12/31/2023 780,000 815,946 06/30/2024 780,000 818,462 12/31/2024 780,000 821,155 Increase in Carrying Value $33,594 35,946 38,462 41,155 What is the carrying value of the bonds as of December 31, 2024? Carrying Value $11,622,778 11,656,372 11,692,318 11,730,780 11,771,935

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A corporation issues $13 million in bonds on January 1, 2023. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Cash Paid Date 01/01/2023 06/30/2023 $780,000 $813,594 12/31/2023 815,946 06/30/2024 818,462 12/31/2024 821,155 Interest Expense 780,000 780,000 780,000 Increase in Carrying Value $33,594 35,946 38,462 41,155 What is the carrying value of the bonds as of December 31, 2024? Carrying Value $11,622,778 11,656,372 11,692,318 11,730,780 11,771,935
Transcribed Image Text:A corporation issues $13 million in bonds on January 1, 2023. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Cash Paid Date 01/01/2023 06/30/2023 $780,000 $813,594 12/31/2023 815,946 06/30/2024 818,462 12/31/2024 821,155 Interest Expense 780,000 780,000 780,000 Increase in Carrying Value $33,594 35,946 38,462 41,155 What is the carrying value of the bonds as of December 31, 2024? Carrying Value $11,622,778 11,656,372 11,692,318 11,730,780 11,771,935
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