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

question 116

Multiple Choice

On January 1, 2015, Carter Sales issued $15,000 in bonds for $15,800. They were 8-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Premium. Immediately after issue of the bonds, the ledger balances appeared as follows: After the first interest payment on June 30, 2015, what will be the balance in the Premium Account?

• A)debit of $50
• B)debit of $900
• C)credit of $625
• D)credit of $750

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Definitions:

Fredric Jameson

A prominent American literary critic and Marxist political theorist known for his analysis of contemporary cultural trends and the role of capitalism in cultural production.

Modern

Pertaining to the period or conditions of the present or recent times, often associated with notions of progress or newness.

Postmodern

A broad movement in the late 20th century across philosophy, the arts, architecture, and criticism, marking a departure from modernism, characterized by skepticism toward grand theories and ideologies.

Structural Marxism

A theory within Marxism that emphasizes the role of societal structures in understanding the dynamics of class conflict and exploitation.