On 1 November 2016,Archangel Services Issued $301,000 of 5-Year Debentures

question 5

Multiple Choice

On 1 November 2016,Archangel Services issued $301,000 of 5-year debentures with a stated rate of 15%.The debentures were sold at par,and Archangel makes semiannual payments on 30 April and 31 October.At 31 December 2016,Archangel made an adjusting entry to accrue interest at year-end.No further entries were made until 30 April 2017,when the first payment was sent out.How much interest expense was recorded for the period of 1 January to 30 April 2017? (Round to the nearest dollar. )

• A)$45,150
• B)$22,575
• C)$36,120
• D)$15,050

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Definitions:

Grid Technique

A quantitative method used for decision-making that involves arranging options on a grid to compare multiple factors and choices.

City Warehouse

An urban storage facility strategically located to minimize distribution time and streamline the supply chain, especially in last-mile delivery services.

Distribution Centers

Facilities that handle the storage, processing, and shipping of goods to various destinations, serving as a key node in the supply chain.