On November 1,2018,Cleveland Services issued $305,000 of five-year bonds with a stated rate of 12%.The bonds were issued at par,and Cleveland makes semiannual payments on April 30 and October 31.On December 31,2018,Cleveland made an adjusting entry to accrue interest at year-end.No further entries were made until April 30,2019,when the first payment was made.What amount of interest expense was recorded for the period of January 1 to April 30,2019? (Do not round any intermediate calculations,and round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

Interest Expense = $305,000 × 12% × 4/12 = $12,200

On November 1,2018,Cleveland Services Issued $305,000 of Five-Year Bonds with a Stated