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. No further entries were made until 30 April 2016 when the first interest payment was made. How much interest expense will be recorded for the period of January to April 2016?
A)$2 000
B)$2 700
C)$2 300
D)$3 000

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. No further entries were made until 30 April 2016 when the first interest payment was made. How much interest expense will be recorded for the period of January to April 2016?
A)$2 000
B)$2 700
C)$2 300
D)$3 000

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