202-12) A company issues a 5-year bond with a $7,500 discount. Using straight-line amortization, the company should: A) debit Discount on Bonds Payable for $1,500 per year. B) credit Discount on Bonds Payable for $1,500 per year. C) debit Interest Payable for $1,500 per year. D) credit Interest Expense for $1,500 per year. 203-13) A 10-year bond that pays interest annually was issued at a $5,000 premium. The entry to record the payment of interest using straight-line amortization will include a Premium on Bonds Payable for - each period. A) credit: $500 B) debit; $500 C) debit; a greater amount each period D) credit; a lower amount each period 204-14) On January 1, Melrose Manufacturing issues a 5-year bond with a face value of $15,000 and a stated interest rate of 7%. The market interest rate is 5%. The issue price of the bond was $16,299. Using the effective interest method of amortization and rounding to the nearest dollar, the interest expense for the first year ended December 31 would be: A) $750. B) $814.95. C) $1,050. D) $1,140.93