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questiona about interest received
user-9199 - 01/1/2019, 1:56 am

On June 1, Year One, Braxton Company issues a bond, it receives its first interest on Aug.1, only two months, 750 time 2=1500

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George-1227 - 01/14/2019, 4:53 pm

The 3,000 is because the dated date is when the interest is starting (prior because its accruing) so $750 x months from feb to june, the interest expense is 7/12 x 750

George-1227 - 01/14/2019, 5:03 pm

The interest rate is confusing, so you calculate from the dated date (Feb 1) to issue date (June 1) and multiple by $750 because the dated date is given. If it wasn't you would be correct.

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