On January 1, 2015, Carter Sales issued $15,000 in bonds for $15,800. They were 8-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Premium. Immediately after issue of the bonds, the ledger balances appeared as follows: After the first interest payment on June 30, 2015, what will be the balance in the Premium Account?

Question

On January 1, 2015, Carter Sales issued $15,000 in bonds for $15,800. They were 8-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Premium. Immediately after issue of the bonds, the ledger balances appeared as follows:  After the first interest payment on June 30, 2015, what will be the balance in the Premium Account?

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The Answer of On January 1, 2015, Carter Sales issued $15,000 in bonds for $15,800. They were 8-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Premium. Immediately after issue of the bonds, the ledger balances appeared as follows:  After the first interest payment on June 30, 2015, what will be the balance in the Premium Account?

On January 1, 2015, Carter Sales Issued $15,000 in Bonds