A company issues a 5-year bond with a $7,500 discount.Using straight-line amortization,the company should:
A)debit discount on bonds payable for $1,500 per year.
B)credit discount on bonds payable for $1,500 per year.
C)debit interest payable for $1,500 per year.
D)credit interest expense for $1,500 per year.

Question

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The Answer of A company issues a 5-year bond with a $7,500 discount.Using straight-line amortization,the company should:
A)debit discount on bonds payable for $1,500 per year.
B)credit discount on bonds payable for $1,500 per year.
C)debit interest payable for $1,500 per year.
D)credit interest expense for $1,500 per year.

A Company Issues a 5-Year Bond with a $7,500 Discount