Discount-Mart issues $10 million in bonds on January 1, 2021. 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: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 $8,640,967 06/30/2021 $300,000 $ 345,639 $45,639 8,686,606 12/31/2021 300,000 347,464 47,464 8,734,070 06/30/2022 300,000 349,363 49,363 8,783,433 12/31/2022 300,000 351,337 51,337 8,834,770 What is the carrying value of the bonds as of December 31, 2022? $8,783,433. O $8,834,770. O $8,734,070. O $8,686,606.
Discount-Mart issues $10 million in bonds on January 1, 2021. 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: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 $8,640,967 06/30/2021 $300,000 $ 345,639 $45,639 8,686,606 12/31/2021 300,000 347,464 47,464 8,734,070 06/30/2022 300,000 349,363 49,363 8,783,433 12/31/2022 300,000 351,337 51,337 8,834,770 What is the carrying value of the bonds as of December 31, 2022? $8,783,433. O $8,834,770. O $8,734,070. O $8,686,606.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Discount-Mart issues $10 million in bonds on January 1, 2021. 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:
Date
Cash Paid
Interest
Expense
Increase in Carrying
Value
Carrying Value
01/01/2021
$8,640,967
06/30/2021 $300,000
$ 345,639
$45,639
8,686,606
12/31/2021
300,000
347,464
47,464
8,734,070
06/30/2022
300,000
349,363
49,363
8,783,433
12/31/2022
300,000
351,337
51,337
8,834,770
What is the carrying value of the bonds as of December 31, 2022?
$8,783,433.
O $8,834,770.
O $8,734,070.
O $8,686,606.
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