Webster Company Issues $1,000,000 Face Value, 6%, 5-Year Bonds Payable

question 114

Multiple Choice

Webster Company issues $1,000,000 face value, 6%, 5-year bonds payable on 31 December 2013. Interest is paid semiannually each 30 June and 31 December. The bonds sell at a price of 97; Webster uses the straight-line method of amortizing bond discount or premium.
-The carrying value of this liability in Webster Company's 31 December 2014, statement of financial position is:

• A) $1,000,000.
• B) $970,000.
• C) $976,000.
• D) $967,000.

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Definitions:

Dysthymic Syndrome

A chronic form of depression with less severe symptoms than major depression, but lasting for a longer period, often years.

Catatonic Depression

A subtype of depression characterized by periods of inability to move or speak, along with traditional symptoms of depression.

Major Depression

A serious mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in previously enjoyed activities.

Behavioral Symptom

Observable actions or responses that indicate the presence of a psychological condition or disorder.