Problemon may 1 2016 plotter inc issued 30000 of ten-year, Ask an Expert

Accounting

Problem

On May 1, 2016, Plotter, Inc., issued $30,000 of ten-year, 12% bonds payable dated January 1, 2016. The cash received amounted to $29,808. The bonds pay interest semiannually. Potter's fiscal year ends on June 30, 2016. What amount of interest expense should be reported on the income statement prepared on June 30, 2016, assuming straight-line amortization?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92751590

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