On January 1,2010,Lane Issues $700,000 of 7%,15-Year Bonds at a Price

Multiple Choice

On January 1,2010,Lane issues $700,000 of 7%,15-year bonds at a price of 106 3/4.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 cash paid in the December 31,2010 journal entry?

A) $24,500
B) $22,925
C) $12,250
D) $11,462
E) $13,458