7) On October I. 2024, Gilgeous-Alexander Company purchased $800,000 (face valu 8% bonds of Barnes, Inc.. for $936,000, including accrued interest of $16,000. The bonds, which mature on January 1, 2031. pay interest semiannually on January 1 and July 1. Gilgeous-Alexander used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Gilgeous-Alexander's December 31, 2025 balance sheet, the carrying value of the bonds is A) S896.000. B) $908,800. C) $912,000. D) $920,000.
7) On October I. 2024, Gilgeous-Alexander Company purchased $800,000 (face valu 8% bonds of Barnes, Inc.. for $936,000, including accrued interest of $16,000. The bonds, which mature on January 1, 2031. pay interest semiannually on January 1 and July 1. Gilgeous-Alexander used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Gilgeous-Alexander's December 31, 2025 balance sheet, the carrying value of the bonds is A) S896.000. B) $908,800. C) $912,000. D) $920,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:7) On October 1, 2024, Gilgeous-Alexander Company purchased $800,000 (face value) of 7),
8% bonds of Barnes, Inc., for $936,000, including accrued interest of $16,000. The
bonds, which mature on January 1, 2031. pay interest semiannually on January 1 and
July 1. Gilgeous-Alexander used the straight-line method of amortization and
appropriately recorded the bonds as available-for-sale. On Gilgeous-Alexander's
December 31, 2025 balance sheet, the carrying value of the bonds is
A) S896,000.
B) $908,800.
C) $912,000.
D) $920,000.
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