Question: On january 1 2 0 2 0 stranger things issued $ 1 0 0 , 0 0 0 face value, 1 4 % bonds for

On january

1 2020

stranger things issued $

100, 000

face value,

14 %

bonds for $

124, 924

cash. The bonds mature on December

31, 2029 .

Interest is paid semiannually on January

1

and July

1 .

The market rate is

10 %

and Stranger Things uses the effective method for recording interest. What amount of accrued interest payable should Stranger Things report in its December

31, 2020

balance sheet?

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