On January 1, 2017, Simpson Sales issued $25,000 in bonds for $31,800. These are eight-year bonds with a stated rate of 9% and pay semiannual interest. Simpson Sales uses the straight-line method to amortize the bond premium. Immediately after the issue of the bonds, the ledger balances are as follows: After the first interest payment on June 30, 2017, what is the balance of Premium on Bonds Payable? (Round your intermediate answers to the nearest dollar.)

Question

On January 1, 2017, Simpson Sales issued $25,000 in bonds for $31,800. These are eight-year bonds with a stated rate of 9% and pay semiannual interest. Simpson Sales uses the straight-line method to amortize the bond premium. Immediately after the issue of the bonds, the ledger balances are as follows:  After the first interest payment on June 30, 2017, what is the balance of Premium on Bonds Payable? (Round your intermediate answers to the nearest dollar.)

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The Answer of On January 1, 2017, Simpson Sales issued $25,000 in bonds for $31,800. These are eight-year bonds with a stated rate of 9% and pay semiannual interest. Simpson Sales uses the straight-line method to amortize the bond premium. Immediately after the issue of the bonds, the ledger balances are as follows:  After the first interest payment on June 30, 2017, what is the balance of Premium on Bonds Payable? (Round your intermediate answers to the nearest dollar.)

On January 1, 2017, Simpson Sales Issued $25,000 in Bonds