On January 2,2014,Mahoney Sales Issued $10,000 in Bonds for $9,400

question 68

Multiple Choice

On January 2,2014,Mahoney Sales issued $10,000 in bonds for $9,400.They were 5-year bonds with a stated rate of 4%,and pay semiannual interest payments.Mahoney Sales uses the straight-line method to amortize the bond discount.After the first interest payment on June 30,2014,what was the bond carrying amount?

• A) $10,000
• B) $9,400
• C) $9,460
• D) $9,880