Use the following partial bond amortization schedule to answer the question. Given information: A corporation issues $100,000 of bonds oh January 1, 2021. The bonds have a 10-year term and pay interest semiannually on June 30 and December 31 each year. What is the carrying value of the bonds as of December 31, 2021? (1) (2) Date 1/1/2021 6/30/2021 12/31/2021 6/30/2030 12/31/2030 Cash Paid Face Amount x Stated Rate $3,500 3,500 3,500 3,500 (3) Interest Expense Carrying Value x Market Rate $3,728 3,737 3,962 3,981 (4) Increase in Carrying Value (3) - (2) $228 237 462 481 (5) Carrying Value Prior Carrying Value + (4) $ 93,205 93,433 93,670 99,057 99,519 100,000

Use the following partial bond amortization schedule to answer the question. Given information: A corporation issues $100,000 of bonds oh January 1, 2021. The bonds have a 10-year term and pay interest semiannually on June 30 and December 31 each year. What is the carrying value of the bonds as of December 31, 2021? (1) (2) Date 1/1/2021 6/30/2021 12/31/2021 6/30/2030 12/31/2030 Cash Paid Face Amount x Stated Rate $3,500 3,500 3,500 3,500 (3) Interest Expense Carrying Value x Market Rate $3,728 3,737 3,962 3,981 (4) Increase in Carrying Value (3) - (2) $228 237 462 481 (5) Carrying Value Prior Carrying Value + (4) $ 93,205 93,433 93,670 99,057 99,519 100,000

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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