On SEPTEMBER 30,2011,Ace Electronics issued $100,000 of 10-year,8% bonds at 100.The bonds pay interest semiannually on September 30 and March 31.On its income statement for the year ended December 31,2011,the year the bonds were issued,Ace Electronics will show Interest expense of ________.
A)$8,000
B)$4,000
C)$2,000
D)This is a trick question.Interest expense appears on the balance sheet,not on the income statement.

Question

On SEPTEMBER  30,2011,Ace Electronics issued $100,000 of 10-year,8% bonds at 100.The bonds pay interest semiannually on September 30 and March 31.On its income statement for the year ended December 31,2011,the year the bonds were issued,Ace Electronics will show Interest expense of ________.
A)$8,000
B)$4,000
C)$2,000
D)This is a trick question.Interest expense appears on the balance sheet,not on the income statement.

Quizplus · Accepted Answer

The Answer of On SEPTEMBER  30,2011,Ace Electronics issued $100,000 of 10-year,8% bonds at 100.The bonds pay interest semiannually on September 30 and March 31.On its income statement for the year ended December 31,2011,the year the bonds were issued,Ace Electronics will show Interest expense of ________.
A)$8,000
B)$4,000
C)$2,000
D)This is a trick question.Interest expense appears on the balance sheet,not on the income statement.

On SEPTEMBER 30,2011,Ace Electronics Issued $100,000 of 10-Year,8% Bonds