on january 1 a company issued and sold a $400 000

O No entry is needed, since no interest is paid until the bond is due. Question 5 2 pts On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. 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: $396,400. @ $399.800. $395.800. 0 $400,000 $396,200. 1 pts