On November 1,2015,Archangel Services Issued $200,000 of 10-Year Bonds with a Stated

question 102

Multiple Choice

On November 1,2015,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 31,2015,Archangel made an adjusting entry to accrue interest at year-end.How much interest expense is recorded at December 31,2015?

• A) $1,075
• B) $2,000
• C) $1,150
• D) $2,150

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Definitions:

Premises

Statements or propositions from which a conclusion is drawn in an argument.

Conclusion

The final part of something, such as an argument or piece of writing, summarizing the main points and often providing a definitive judgment or decision.

Arrow

A symbol or graphical representation used to indicate direction, movement, or the relationship between two elements.

Dependent Premises

Dependent premises are a set of premises in an argument that rely on each other for the argument's conclusion to hold.