Week $4$ Activity Sequence

Question $1$

$2$ pts

Red Company issued $$500,000$ of $6\%,5-$year bonds at par on May $1,20$X$4.$ Bondholders receive cash payments for the interest every six months.

What is the Interest Payable on Red Company's balance sheet on December $31,20$X$4,$ related to these bonds?

$$30,000$

$$2,500$

$$500,000$

$$5,000$