Question

On January 1, 2013, Lane issues $700,000 of 7%, 15-year bonds at a price of 106. The interest payments are made on June 30 and December 31. Lane elects a fiscal year ending September 30. What is the amount that would be recorded as interest expense in the December 31, 2013, journal entry?

A. $24,500.00

B. $22,925.00
C. $12,250.50

D. $11,462.50
E. $13,458.00

Answer

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