Angelas Company issued a $500,000, 10 percent, 10-year bond on January 1, 2015, for 113.6 when the effective interest rate was 8 percent. Interest is payable on June 30 and December 31. Using the effective-interest method to amortize all premiums and discounts, how much interest expense should the company record on December 31, 2015?

Answer rating: 100% (QA)

Step 1 Bond Premium is amount received in excess of par value at issuance of bonds whereas Bond Disc... View the full answer