Questions -
Q1. On January 1, 2017, Toland Sales issued $26,000 in bonds for $20,300. These are eight-year bonds with a stated interest rate of 14% pay semiannual interest. Toland Sales uses the straight-line method to amortize the bond discount. What is the bond carrying amount after the first interest payment on June 30, 2017? (Round your intermediate answers to the nearest dollar.)
A. $26,000
B. $23,506
C. $17,806
D. $20,656
Q2. Going Places Adventure Travel signed a 14%, 10-year note for $160,000. The company paid an installment of $2,600 for the first month. After the first payment, what is the principal balance? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
A. $159,267
B. $162,600
C. $157,400
D. $158,133