Multiple Choice
Exhibit 14-1 Alfred issued 9%, ten-year bonds dated January 1, 2010, with a face value of $100, 000 at 102 plus accrued interest on March 1, 2010.Alfred amortizes premiums and discounts using the straight-line method.Expenses connected with the issue totaled $5, 000 and were deducted in arriving at the net proceeds.
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Refer to Exhibit 14-1.Assuming interest is paid semiannually on January 1 and July 1, the balance of the interest expense account (to the nearest dollar) after the July 1, 2010, entry would be
A) $1, 551
B) $1, 602
C) $1, 398
D) $1, 500
Correct Answer:
Verified
Correct Answer:
Verified
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