Issued 400,000 of 4%,20yr bonds on jan1 2010 at 95. And pay interest semi anually jan1 and july1 beg july1 2010. Year end is
dec31.
What is the issue price of the bonds?
What is the carrying value of bonds on July 1 2010 after the first cash interest payment has been made?

issue price is 400000*95%=380,000.
carrying value is (400,000 -8000)- 20000=372000.
(400000*4/100)/2=8000 is this the way to do it.

Your question states 400,000 bonds. Do you mean $400,000? If $400,000, your answer of $380,000 is correct.

The carrying amount of a company’s bonds payable is the balance in the company’s general ledger account Bonds Payable minus the amount in Discount on Bonds Payable or plus the amount in its account Premium on Bonds Payable. (If there is some unamortized bond issue cost associated with the bond, that would also be part of the carrying amount.) In your example, assuming $400,000 face value of bonds issued at $380,000, at issuance you have a face value of $400,000 in Bonds Payable and a discount balance of $20,000 in Discounts of Bonds. Over the life of the bond, the discount is amortized to zero. Using straight-line amortization, the discount would be amortized at the rate of $500 every six months (20,000 divided by the 20 year life divided by 2 for semi-annual payments). Your carrying value at 7/1/10 would be $380,500. By the time the bonds mature, it would be $400,000.