Carly Corporation issued $200,000 of 30-year, 8% bonds at 106 on January 1, 2016. Interest is payable semiannually on June 30th and December 31st. The straight-line method of amortization is to be used. After 11 years, what is the carrying value of the bonds?

$207,600

Explanation:

The journal entry to record the issuance of the bonds:

January 1, 2016

Dr Cash 212,000

    Cr Bonds payable 200,000

    Cr Premium on bonds payable 12,000

Premium on bonds payable $12,000 / 60 semiannual coupons = $200 amortization per coupon payment

after 11 years, 22 coupons were paid 22 x $200 = $4,400

bonds carrying value after 11 years = $200,000 + $12,000 - $4,400 = $207,600

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.

i might look it up later.