On 1 November 2015, Archangel Services Issued $200 000 of 10-

Multiple Choice

On 1 November 2015, Archangel Services issued $200 000 of 10- year debentures with a stated rate of 3%. The debentures were sold at par, and make half- yearly payments on 30 April and 31 October. At 31 December 2015, Archangel made an adjusting entry to accrue interest at year- end. How much interest expense will be recorded at 31 December 2015?

A) $500
B) $1 000
C) $1 500
D) $6 000