Question

arch services issued $313000 of eight year bonds with a stated rate of 12% at par. interest payments occur each April 30 and October 31. on december 31, 2018, arch made an adjusting entry to accrue interest at year end. what is the amount of interest expense that will be recorded

Answer 1

USD 6,260/-

Step-by-step explanation:

By applying values in the below formula:

Interest expense = Services * Rate * month/Year

= 313000*12%*2/12

=6,260