On January 1,2017,Killion Sales issued $22,000 in bonds for $17,700.These are six-year bonds with a stated interest rate of 11% that pay semiannual interest.Killion Sales uses the straight-line method to amortize the Bond Discount.Immediately after the issue of the bonds,the ledger balances appeared as follows:
Discount on Bonds Payable
After the first interest payment on June 30,2017,what is the balance of Discount on Bonds Payable?
A) debit of $3,942
B) debit of $4,300
C) debit of $4,658
D) credit of $358
Correct Answer:
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