Company A issue 10% bonds par value of $100000 at a discount of 2%.
Dr Cash $98000
Dr Discount $2000
CR Bonds $100000

1. What is the value carried to the balance sheet? Why?
2. What is the value on which the company pay interest? Why?

The three items are ultimately carried to the balance sheet.

1) The cash as a Current Asset.
2) The discount finishes in the Accumulated
Losses.
3) The Bonds int the Equity Balance.

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The Company will pay Interest on the
whole $100,000 value on the Bonds.

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Would the amount in the Equities section be $98000 or $100000?

It would definitely be $100,000.