On November 1, 2017, Archangel Services issued $313,000 of eight-year bonds with a stated rate of 12% at par
Interest payments occur each April 30 and October 31. On December 31, 2017, Archangel made an adjusting entry to accrue interest at year-end. What is the amount of Interest Expense that will be recorded on December 31, 2017?
A) $37,560
B) $6,260
C) $18,780
D) $783
B .Interest Expense = $313,000 x 12% x 2/12 = $6,260
You might also like to view...
Identify the question that is least significant in determining whether your organization is customer-oriented
A) Are you easy to do business with? B) Do you keep your promises? C) Do you use frequent advertisement? D) Do you meet the standards you set?
Which of the following is TRUE of substance abuse and work in the U.S.?
a. Substance abuse is estimated to cost employers $120 billion a year. b. Substance abuse by employees has fallen dramatically every year for several decades. c. Protected groups, especially racial minorities, make up the typical illegal drug user. d. Substance abuse is a problem but rarely affects job performance.
In a deferred payment arrangement, interest is charged only if it is stated
Indicate whether the statement is true or false
Explain the role of the sciences in the study of ethics.
What will be an ideal response?