Question 20 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: $400,000 $399,800 $396,400. $395,800 $396,200 Question 21 The Premium on Bonds Payable account is a(n): O Revenue account Adjunct liability account. Contra revenue account. Contra asset account. Equity account rtion 22