Which of the following information is typically shown in a bond amortization schedule?

• A. The number of shares issued by the company
• B. The annual dividend paid to shareholders
• C. The carrying value of the bond after each interest period
• D. The market price of the bond at issuance

Answer: (C)

Verified step by step guidance

1. Understand the purpose of a bond amortization schedule: It is used to track the carrying value of a bond over time as interest is accrued and payments are made.
2. Identify the key components of a bond amortization schedule: These typically include the interest expense, the cash payment, the amortization of the bond discount or premium, and the carrying value of the bond after each interest period.
3. Clarify why the carrying value of the bond is included: The carrying value represents the book value of the bond on the company's financial statements, which changes as the bond discount or premium is amortized over time.
4. Eliminate irrelevant options: The number of shares issued by the company and the annual dividend paid to shareholders are related to equity, not bonds. Similarly, the market price of the bond at issuance is not tracked in the amortization schedule, as it focuses on accounting values rather than market values.
5. Conclude that the carrying value of the bond after each interest period is the correct answer, as it is a fundamental part of the bond amortization schedule.