On January 1, Hurley Corporation issues $500,000, 5- year, 12% bonds at 96 with interest payable on July 1 and January 1. Assuming straight-line amortization of bond discount, what is the carrying value of the bonds at the end of the third interest period? O $486,000 O $472,000 $464,000 $488,000

On January 1, Hurley Corporation issues $500,000, 5- year, 12% bonds at 96 with interest payable on July 1 and January 1. Assuming straight-line amortization of bond discount, what is the carrying value of the bonds at the end of the third interest period? O $486,000 O $472,000 $464,000 $488,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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Question

On January 1, Hurley Corporation issues $500,000, 5-
year, 12% bonds at 96 with interest payable on July 1
and January 1. Assuming straight-line amortization of
bond discount, what is the carrying value of the
bonds at the end of the third interest period?
$486,000
$472,000
$464,000
$488,000

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