Blanding Company Issues $1,000,000 of 8%, 10-Year Bonds at 98

question 58

Multiple Choice

Blanding Company issues $1,000,000 of 8%, 10-year bonds at 98 on February 28, 2014. The bonds pay interest on February 28 and August 31. Assume that Blanding uses the straight-line method for amortization. What net balance will be reported for the bonds on the balance sheet on August 31, 2014?

• A)$981,000
• B)$1,000,000
• C)$979,000
• D)$980,000

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