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:
Bonds Payable
29,000
Discount on Bonds Payable
8,300
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
C .Discount on Bonds Payable $8,300
Less: Amortization of Discount (8,300 / 6 ) 1,383
Balance $6,917
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