On January 1,2017,Streuly Sales issued $29,000 in bonds for $20,700.These are six-year bonds with a stated rate of 12% and pay semiannual interest.Streuly 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 second interest payment on December 31,2017,what is the balance of Discount on Bonds Payable?
A) debit of $7,608
B) debit of $8,992
C) debit of $6,917
D) credit of $8,300
Correct Answer:
Verified
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