On January 1,2019,First Street Sales issued $38,000 in bonds for $15,700.These are six-year bonds with a stated interest rate of 16% that pay semiannual interest.First Street 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 30,2019,what is the balance of Discount on Bonds Payable? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Question

On January 1,2019,First Street Sales issued $38,000 in bonds for $15,700.These are six-year bonds with a stated interest rate of 16% that pay semiannual interest.First Street 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 30,2019,what is the balance of Discount on Bonds Payable? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Quizplus · Accepted Answer

A)
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On January 1,2019,First Street Sales Issued $38,000 in Bonds for $15,700.These