On January 1, 2018, Legion Company sold $200,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $177,000, priced to yield 12%. Legion records interest at the effective rate.
-Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of:

Question

On January 1, 2018, Legion Company sold $200,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $177,000, priced to yield 12%. Legion records interest at the effective rate. 
-Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of:

Quizplus · Accepted Answer

6% × $177,000 = $10,620

On January 1, 2018, Legion Company Sold $200,000 of 10