On January 1, 2017, Carter Sales issued $38,000 in bonds for $16,700
These are six-year bonds with a stated interest rate of 11%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Discount. What amount is debited to Interest Expense on June 30, 2017?
A) $2,090
B) $3,865
C) $1,775
D) $43,297
B .Cash interest payment ($38,000 x 11% x 6/12 ) $2,090
Add: Amortized Amount [(($38,000 - $16,700 ) / 6 ) x (6/12 )] $1,775
Total Interest Expense $3,865
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