Question

97.On January? 1, 2018, Waller Sales issued? $30,000 in bonds for? $23,300. These are? eight-year bonds...

97.On January? 1, 2018, Waller Sales issued? $30,000 in bonds for? $23,300. These are? eight-year bonds with a stated rate of? 11%, and pay semiannual interest. Waller Sales uses the? straight-line method to amortize the bond discount. After the second interest payment on December? 31, 2018, what is the bond carrying?amount? (Round your intermediate answers to the nearest? cent, and your final answer to the nearest?dollar.) A.$24,138 B.?$30,000 C.?$23,719 D.$23,300 99.Irrespective of the original? profit-and-loss-sharing ratio, the bonus received by existing partners—by admitting a new partner—will be allocated equally True or false

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Answer #1
ans 97
Par value of bonds $30,000
Less: Issue price of bonds $23,300
Discount on Bonds payable $6,700
No. of period 16
Amortization per period $418.75
Till Dec 31 2018 discount amortized is
418.75*2 $838
Carrying value
23300+838 24138
Option A $24138 is correct option
ans 99
FALSE
No the bonus is not allocated equally among the
existing partner, it is allocated in profit and loss sharing ratio
or as per the terms in the agreement.

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