Exhibit 14-13 On January 1, 2013, Marney Co. issued $80,000 of serial bonds that pay 9% interest annually. Each December 31, $16,000 of the bonds comes due. The bonds were issued for $84,800.

-Refer to Exhibit 14-13. If the bonds outstanding method is in use, what would be the total amount of interest expense for 2015?

Question

Exhibit 14-13 On January 1, 2013, Marney Co. issued $80,000 of serial bonds that pay 9% interest annually. Each December 31, $16,000 of the bonds comes due. The bonds were issued for $84,800.

-Refer to Exhibit 14-13. If the bonds outstanding method is in use, what would be the total amount of interest expense for 2015?

Quizplus · Accepted Answer

The total amount of interest expense for 2015 would be $3,360. This is because the bonds outstanding method is in use, which means that the interest expense is calculated based on the number of bonds that are outstanding at the end of the year. In this case, there are $64,000 of bonds outstanding at the end of 2015, and the interest rate is 9%. Therefore, the interest expense for 2015 would be $64,000 x 9% = $3,360.

Exhibit 14-13 on January 1, 2013, Marney Co