On November 1,2013,Archangel Services Issued $200,000 of 10-Year Bonds with a Stated

question 138

Essay

On November 1,2013,Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%.The bonds were sold at discount for $191,000 and make semiannual payments on April 30 and October 31.At December 31,2013,Archangel made an adjusting entry to accrue interest at year-end.Please provide that entry.
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Definitions:

Contract

A contract among two or more entities that is legally enforceable.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise made when the other party has reasonably relied on that promise to their detriment.

Consideration

Something of value promised to another when making a contract that motivates both parties to enter into the agreement.

Mistake Of Fact

A legal defense in which an individual argues that a misunderstanding of fact rather than law led to the action that constituted an alleged offense.