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McDonald Sales Prepared a Bond Issue of $20,000 Dated January

Question 117

Multiple Choice

McDonald Sales prepared a bond issue of $20,000 dated January 1,2013.The bonds have a stated rate of 3% and a term of 6 years.The bond issue was delayed,and the bonds were finally sold on March 1,2013 at par.On June 30,2011,the first semiannual interest payment is made.How much is the total amount of interest expense McDonalds will record for the first half of 2013?


A) $600
B) $200
C) $300
D) $350

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