MC Qu. 45 LO 14-02, 14-04 On January 31, 2013, B Corp. issued... On January 31,
ID: 2500862 • Letter: M
Question
MC Qu. 45 LO 14-02, 14-04 On January 31, 2013, B Corp. issued...
On January 31, 2013, B Corp. issued $500,000 face value, 9% bonds for $500,000 cash. The bonds are dated December 31, 2012, and mature on December 31, 2022. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2013, balance sheet? (Do not round your intermediate calculation.)
$33,750.
$30,000.
$11,250.
$22,500.
On January 31, 2013, B Corp. issued $500,000 face value, 9% bonds for $500,000 cash. The bonds are dated December 31, 2012, and mature on December 31, 2022. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2013, balance sheet? (Do not round your intermediate calculation.)
Explanation / Answer
Answer is $ 11250.
Accrued interest payable for B corp on September 30 2013 = 500000* 9/100 * 3/12 = 11250
Please note interest till June 2013 should have already been paid so only interest for july to september is payable on september 30th 2013 balance sheet date.
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