Problem:
Garland Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31. Garland uses the straight-line method of amortization.
Required:
Question: What is the carrying value of the bonds on January 1, 2015?
Note: Please show the work not just the answer.