Exam 1 Chapters 13 14 Question 21 of 26 21 Acompany issued5y

Exam 1 (Chapters 13& 14) Question 21 (of 26) 21. Acompany issued5-year bonds with per value of S0000 The market tme when the bonds were sued wat t% The company secerved S93 653 cmh for the bnds Using the eneche neest method. re amount of interes expense for the frst seminnusl nterest period O $3,600.00 O $8 100 00 O $7 49224 O $3,746 12 O $405000 1ype here to search LG BK331THO1

Solution

Solution: The amount of interest expense for the first semiannual interest period is 3746.12

Working:

$93,653 * 0.08 * 1/2= 3746.12