On November 1, 2013, Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%. The bonds were sold at discount for $191,000 and make semiannual payments on April 30 and October 31. At December 31, 2013, Archangel made an adjusting entry to accrue interest at year-end. No further entries were made until April 30, 2014 when the first interest payment was made. Please provide the journal entry for that payment.

Question

Quizplus · Accepted Answer

The Answer of On November 1, 2013, Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%. The bonds were sold at discount for $191,000 and make semiannual payments on April 30 and October 31. At December 31, 2013, Archangel made an adjusting entry to accrue interest at year-end. No further entries were made until April 30, 2014 when the first interest payment was made. Please provide the journal entry for that payment.

On November 1, 2013, Archangel Services Issued $200,000 of 10-Year