On may 1 2010 potter inc. issued 30000 of ten-year 12 bonds, Ask an Expert

Accounting

On May 1, 2010, Potter, Inc., issued $30,000 of ten-year, 12% bonds payable dated January 1, 2010. The cash received amounted to $29,808. The bonds pay interest semiannually. Potter's fiscal year ends on June 30, 2010. What amount of interest expense should be reported on the income statement prepared on June 30, 2010, assuming straight-line amortization?

Select one:

a. $549.60

b. $669.60

c. $609.60

d. $624.00

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M946034

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