On 1 January 2017,Carter Sales issued $16,000 in debentures for $26,800.They were eight year debentures with a stated rate of 10%,and pay semiannual interest.Carter Sales uses the straight-line method to amortise the Debentures premium.Immediately after issue of the debentures,the ledger balances appeared as follows:

After the first interest payment on 30 June 2017,what will be the balance in the Premium account? (Round to the nearest dollar.)
A) debit of $675
B) credit of $10,125
C) debit of $12,150
D) credit of $125

Question

On 1 January 2017,Carter Sales issued $16,000 in debentures for $26,800.They were eight year debentures with a stated rate of 10%,and pay semiannual interest.Carter Sales uses the straight-line method to amortise the Debentures premium.Immediately after issue of the debentures,the ledger balances appeared as follows:

After the first interest payment on 30 June 2017,what will be the balance in the Premium account? (Round to the nearest dollar.)

After the first interest payment on 30 June 2017,what will be the balance in the Premium account? (Round to the nearest dollar.)
A) debit of $675 
B) credit of $10,125 
C) debit of $12,150 
D) credit of $125

Quizplus · Accepted Answer

The Answer of On 1 January 2017,Carter Sales issued $16,000 in debentures for $26,800.They were eight year debentures with a stated rate of 10%,and pay semiannual interest.Carter Sales uses the straight-line method to amortise the Debentures premium.Immediately after issue of the debentures,the ledger balances appeared as follows:

After the first interest payment on 30 June 2017,what will be the balance in the Premium account? (Round to the nearest dollar.)
A) debit of $675 
B) credit of $10,125 
C) debit of $12,150 
D) credit of $125

On 1 January 2017,Carter Sales Issued $16,000 in Debentures for $26,800.They