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MartinezInc. issued $660,000of8%,10-year bonds on June 30, 2020, for $577,750. This price provided a yield of10% on the bonds. Interest is payable semiannually on December
MartinezInc. issued $660,000of8%,10-year bonds on June 30, 2020, for $577,750. This price provided a yield of10% on the bonds. Interest is payable semiannually on December 31 and June 30. IfMartinezuses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020.(Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.)
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