Multiple Choice
On May 1, 2010, Potter, Inc., issued $30, 000 of ten-year, 12% bonds payable dated January 1, 2010.The cash received amounted to $29, 808.The bonds pay interest semiannually.Potter's fiscal year ends on June 30, 2010.What amount of interest expense should be reported on the income statement prepared on June 30, 2010, assuming straight-line amortization?
A) $624.00
B) $669.60
C) $549.60
D) $609.60
Correct Answer:
Verified
Correct Answer:
Verified
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