On January 1, 2015, Carter Sales Issued $15,000 in Bonds

question 23

Multiple Choice

On January 1, 2015, Carter Sales issued $15,000 in bonds for $14,700. They were 6-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Discount. Immediately after issue of the bonds, the ledger balances appeared as follows: After the second interest payment on December 31, 2015, what will be the balance in the Discount account?

• A)debit of $275
• B)debit of $350
• C)debit of $250
• D)credit of 300

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Definitions:

Achievement

The act of accomplishing a task or reaching a goal, often through effort, skill, or courage.

Affiliation

A connection or association with a group or organization.

Social Comparison

A psychological process where individuals evaluate their own abilities and opinions by comparing themselves to others.

Foundation

An underlying basis or principle for something, or an organization established for a specific purpose such as charitable, educational, or research objectives.