On April 1, Apex Corp issues bonds with a face value of $400,000 and an annual interest rate of 5%, payable semi- annually. What is the amount of interest expense recorded on October 1, the first interest payment date? a. $20,000 b. $10,000 c. $5,000 d. $0

On April 1, Apex Corp issues bonds with a face value of $400,000 and an annual interest rate of 5%, payable semi- annually. What is the amount of interest expense recorded on October 1, the first interest payment date? a. $20,000 b. $10,000 c. $5,000 d. $0

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

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Can you solve this general accounting question with accurate accounting calculations?

On April 1, Apex Corp issues bonds with a face value of
$400,000 and an annual interest rate of 5%, payable semi-
annually.
What is the amount of interest expense recorded on October
1, the first interest payment date?
a. $20,000
b. $10,000
c. $5,000
d. $0

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