On January 1,2013,Lane Issues $700,000 of 7%,15-Year Bonds at a Price

Multiple Choice

On January 1,2013,Lane issues $700,000 of 7%,15-year bonds at a price of 106¾.The interest payments are made on June 30 and December 31.Lane elects a fiscal year ending September 30.What is the amount that would be recorded as interest expense in the December 31,2013,journal entry?

A) $24,500.00
B) $22,925.00
C) $12,250.50
D) $11,462.50
E) $13,458.00