On January 2,2014,Mahoney Sales Issued $10,000 in Bonds for $9,400

question 161

Multiple Choice

On January 2,2014,Mahoney Sales issued $10,000 in bonds for $9,400.They were 5-year bonds with a stated rate of 4%,and pay semiannual interest payments.Mahoney Sales uses straight-line method to amortize bond discount.Immediately after issue of the bonds,the ledger balances appeared as follows:
- After the second interest payment on December 31,2014,what was the balance in the discount account?

• A) Debit of $540
• B) Debit of $720
• C) Debit of $480
• D) Credit of $660

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Definitions:

Overarousal

A condition of excessive psychological and physiological tension, often leading to anxiety, restlessness, or inability to sleep.

Neurotransmitter

Chemical messengers that transmit signals across the synaptic gap between neurons, influencing various bodily functions.

Alarm Centers

Brain regions responsible for processing threats and initiating the body's stress response, often involving the amygdala and hypothalamus.

Glutamate

A major neurotransmitter in the nervous system, essential for memory, learning, and brain development.