Homework answers / question archive / On January 1, 2011, Zooland Enterprises sold 8%, 20-year bonds with a face amount of $1,000,000 for $960,000

On January 1, 2011, Zooland Enterprises sold 8%, 20-year bonds with a face amount of $1,000,000 for $960,000

Accounting

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On January 1, 2011, Zooland Enterprises sold 8%, 20-year bonds with a face amount of $1,000,000 for $960,000.  Interest is payable semiannually on July 1 and January 1.

Instructions

Calculate the carrying value of the bond at December 31, 2011 and 2012.