On January 1,2017,Simpson Sales Issued $25,000 in Bonds for $31,800

On January 1,2017,Simpson Sales issued $25,000 in bonds for $31,800.These are eight-year bonds with a stated rate of 9% and pay semiannual interest.Simpson Sales uses the straight-line method to amortize the bond premium.Immediately after the issue of the bonds,the ledger balances are as follows:

Premium on Bonds Payable

After the first interest payment on June 30,2017,what is the balance of Premium on Bonds Payable? (Round your intermediate answers to the nearest dollar. )

A) debit of $425
B) debit of $7,650
C) credit of $700
D) credit of $6,375