On 1 January 2017,Carter Sales Issued $16,000 in Debentures for $26,800.They

Multiple Choice

On 1 January 2017,Carter Sales issued $16,000 in debentures for $26,800.They were eight year debentures with a stated rate of 10%,and pay semiannual interest.Carter Sales uses the straight-line method to amortise the Debentures premium.Immediately after issue of the debentures,the ledger balances appeared as follows:


After the first interest payment on 30 June 2017,what will be the balance in the Premium account? (Round to the nearest dollar.)

A) debit of $675
B) credit of $10,125
C) debit of $12,150
D) credit of $125