On November 1,2014,Archangel Services issued $300,000 of 5-year bonds with a stated rate of 10%.The bonds were sold at par,and Archangel makes semiannual payments on April 30 and October 31.On December 31,2014,Archangel made an adjusting entry to accrue interest at year-end.No further entries were made until April 30,2015,when the first payment was sent out.How much interest expense was recorded for the period of January 1 to April 30,2015?

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The interest expense for the period of January 1 to April 30, 2015 is $10,000. This is because the bonds were sold at par, which means that the face value of the bonds is equal to the amount of money that Archangel received from the sale of the bonds. The stated rate of the bonds is 10%, which means that Archangel is obligated to pay $30,000 in interest each year. Since Archangel makes semiannual payments, the interest expense for the period of January 1 to April 30, 2015 is $10,000.

On November 1,2014,Archangel Services Issued $300,000 of 5-Year Bonds with a Stated