On January 1, 2017, Killion Sales issued $22,000 in bonds for $17,700
These are six-year bonds with a stated interest rate of 11% that pay semiannual interest. Killion 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
22,000
Discount on Bonds Payable
4,300
After the first interest payment on June 30, 2017, what is the balance of Discount on Bonds Payable?
A) debit of $3,942
B) debit of $4,300
C) debit of $4,658
D) credit of $358
A .Discount on Bonds Payable $4,300
Less: Amount Amortized [(($22,000 - $17,700 ) / 6 ) x (6/12 )] 358
Balance $3,942
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If Berkeley Shirtmakers ties compensation directly to output by paying an employee a certain amount for each unit of output produced, it is using
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Gambling Debts. George Aubin, the ex-president of a failed bank and a resident of Texas (where gambling debts are unenforceable), traveled to the Bahamas (where gambling debts are enforceable) to gamble at the Cable Beach Hotel and Casino, owned by
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What will be an ideal response?