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Question: On January 1, 2017, Streuly Sales issued $34,000 in bonds for $18,700. These are six year bonds with a stated rate of 9% 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 34,000
Discount on Bonds Payable 15,300
After the second interest payment on December 31, 2017, what is the balance of Discount on Bonds Payable? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A. debit of $14,025
B. debit of $16,575
C. credit of $15,300
D. debit of $12,750
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