Homework Help is Here – Start Your Trial Now!
Business
Accounting
Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a eight-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       16,786,063 06/30/2021 570,000 671,443 101,443 16,887,506 12/31/2021 570,000 675,500 105,500 16,993,006 06/30/2022 570,000 679,720 109,720 17,102,726 12/31/2022 570,000 684,109 114,109 17,216,835               What is the carrying value of the bonds as of December 31, 2022?   Multiple Choice   $16,993,006.   $17,102,726.   $18,356,835.   $17,216,835

Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a eight-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       16,786,063 06/30/2021 570,000 671,443 101,443 16,887,506 12/31/2021 570,000 675,500 105,500 16,993,006 06/30/2022 570,000 679,720 109,720 17,102,726 12/31/2022 570,000 684,109 114,109 17,216,835               What is the carrying value of the bonds as of December 31, 2022?   Multiple Choice   $16,993,006.   $17,102,726.   $18,356,835.   $17,216,835

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a eight-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       16,786,063
06/30/2021 570,000 671,443 101,443 16,887,506
12/31/2021 570,000 675,500 105,500 16,993,006
06/30/2022 570,000 679,720 109,720 17,102,726
12/31/2022 570,000 684,109 114,109 17,216,835
         

 

 

What is the carrying value of the bonds as of December 31, 2022?

 

Multiple Choice
  •  

    $16,993,006.

  •  

    $17,102,726.

  •  

    $18,356,835.

  •  

    $17,216,835.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Presentation of Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS