Discount-Mart issues $15 million in bonds on January 1, 2012. They have a seven-

Question

Discount-Mart issues $15 million in bonds on January 1, 2012. They have a seven-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.

What is the carrying value of the bonds as of December 31, 2013? (Round your answer to the nearest dollar amount.)

$13,841,740.

$15,041,740.

$13,754,038.

$13,670,512.

Discount-Mart issues $15 million in bonds on January 1, 2012. They have a seven-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.

Explanation / Answer

Ans-1,3841,740

600000/1500000=4% semi annualy

675760/13515204=5% semi annualy

Date Cash Paid Interest Increase in Carrying Expense Carrying Value Value 4% of Face value 5% of Carrying value 1/1/2012 13515204 6/30/2012 600,000 675760 $75,760      13590964 12/31/2012 600,000 679548 79,548      13670512 6/30/2013 600,000 683526 83,526      13754038 12/31/2013 600,000 687702 (5% of 13754038) 87702 (687,702-600,000) 1,3841,740

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.