On January 1, 2017, Streuly Sales issued $28,000 in bonds for $18,700. These are six-year bonds with a stated rate of 13% and pay semiannual interest. Streuly Sales uses the straight-line method to amortize the Bond Discount. Immediately after the issue of the bonds, the ledger balances appeared as follows: After the second interest payment on December 31, 2017, what is the balance of Discount on Bonds Payable? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Question

On January 1, 2017, Streuly Sales issued $28,000 in bonds for $18,700. These are six-year bonds with a stated rate of 13% and pay semiannual interest. Streuly Sales uses the straight-line method to amortize the Bond Discount. Immediately after the issue of the bonds, the ledger balances appeared as follows:  After the second interest payment on December 31, 2017, what is the balance of Discount on Bonds Payable? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Quizplus · Accepted Answer

The Answer of On January 1, 2017, Streuly Sales issued $28,000 in bonds for $18,700. These are six-year bonds with a stated rate of 13% and pay semiannual interest. Streuly Sales uses the straight-line method to amortize the Bond Discount. Immediately after the issue of the bonds, the ledger balances appeared as follows:  After the second interest payment on December 31, 2017, what is the balance of Discount on Bonds Payable? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

On January 1, 2017, Streuly Sales Issued $28,000 in Bonds