On 1 November 2015, Archangel Services issued $200 000 of 10- year debentures with a stated rate of 3%. The debentures were sold at discount for $191 000, and make half- yearly payments on 30 April and 31 October. At 31 December 2015, Archangel made an adjusting entry to accrue interest at year- end. How much interest expense is recorded at 31 December 2015?
A)$2 150
B)$2 000
C)$1 150
D)$1 075

Question

Quizplus · Accepted Answer

The Answer of On 1 November 2015, Archangel Services issued $200 000 of 10- year debentures with a stated rate of 3%. The debentures were sold at discount for $191 000, and make half- yearly payments on 30 April and 31 October. At 31 December 2015, Archangel made an adjusting entry to accrue interest at year- end. How much interest expense is recorded at 31 December 2015?
A)$2 150
B)$2 000
C)$1 150
D)$1 075

On 1 November 2015, Archangel Services Issued $200 000 of 10-