A company issues a 5-year bond with a $7,500 discount. Using straight-line amortization, the company should:
A. credit Discount on Bonds Payable for $1,500 per year.
B. debit Discount on Bonds Payable for $1,500 per year.
C. debit Interest Payable for $1,500 per year.
D. credit Interest Expense for $1,500 per year.
Answer: A
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When terms that are not widely understood or have specific meanings in a study, their definitions should be written in the term-family-differentiation sequence in the report.
Answer the following statement true (T) or false (F)
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