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:

Interpretation Guidelines

A set of rules or suggestions designed to assist in the translation or explanation of information in a specific context.

Employing Interpretation

The process of using analytical and critical thinking skills to understand and explain the meaning or significance of something.

Behavioral Discrepancy

The difference between observed behavior and expected or desired behavior in an individual or group.

Affective Discrepancy

The difference between the emotions one feels and the emotions one displays or communicates, often related to psychological discomfort or social strategies.