MC Qu. 118 On January 1, a company issued...

On January 1, a company issued and sold a $300,000, 5%, 10-year bond payable, and received proceeds of $293,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the first interest payment is:

Multiple Choice:

$300,000.

$299,650.

$300,350.

$292,650.

$293,350.

MC Qu. 119 On January 1, a company issued...

On January 1, a company issued and sold a $500,000, 5%, 10-year bond payable, and received proceeds of $496,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:

Multiple Choice:

$500,000.

$499,800.

$496,400.

$495,800.

$496,200.