Interest expense using straight line interest method


Problem: Assume that the following information is relevant for one of the bond issues of Chris Company:

Face value $800,000

Bond term 15 years

Stated interest rate 12%

Market interest rate 8%

Issue date July 1, 2012

Interest payment dates June 30 and December 31 each year (paid semiannually).

The total amount of interest expense to be recognized on December 31, 2012 (the first interest payment date) using the straight line interest method is:

A) $52,549.12.

B) $65,584.96

C) $72,737.28.

D) $43,056.64.

Our Interest Expense Assignment Help service has professional native tutors, who are well-versed with the university guidelines and formatting styles of all the reputed universities and compose the paper accordingly.

Tags: Interest Expense Assignment Help, Interest Expense Homework Help, Interest Expense Coursework, Interest Expense Solved Assignments

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Interest expense using straight line interest method
Reference No:- TGS03031639

Expected delivery within 24 Hours