On January 2,2014,Mahoney Sales Issued $10,000 in Bonds for $10,900

question 148

Multiple Choice

On January 2,2014,Mahoney Sales issued $10,000 in bonds for $10,900.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 premium.After the first interest payment on June 30,2014,what was the bond carrying amount?

• A) $9,100
• B) $10,810
• C) $9,810
• D) $9,190

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Definitions:

Principal Characteristic

The most significant or defining feature of an object, concept, or entity.

Limited Liability

A legal structure that protects a company's owners or shareholders from being personally liable for the company’s debts or liabilities.

Limited Life

A term indicating that an entity or asset has a finite period of usefulness or existence.

General Partner

A partner in a partnership responsible for management decisions, who has unlimited liability for the debts and obligations.