Question

On January 1, 2008, Gilson Corporation issued for $1,030,000, one thousand of its 9%, callable $1,000 bonds. The bonds are dated January 1, 2008, and mature on December 31, 2022. Interest is payable semiannually on January 1 and July 1. The bonds can be called by the issuer at 102 on any interest payment date after December 31, 2012. The unamortized bond premium was $14,000 at December 31, 2015, and the market price of the bonds was 99 on this date. In its December 31, 2015, balance sheet, at what amount should Gilson report the carrying value of the bonds

Answer 1

$1,014,000

Step-by-step explanation:

Calculation to determine at what amount should Gilson report the carrying value of the bonds

Bonds carrying value=1,000 *callable $1,000 bonds)+Unamortized bond premium $14,000

Bonds carrying value=$1,000,000+$14,000

Bonds carrying value=$1,014,000

Therefore what amount should Gilson report the carrying value of the bonds is $1,014,000