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Mountaintop Sports Inc. issued $200,000 of 10-year, 6% bonds, with interest payable semiannually on June 30 and December 31 each year. The bonds were sold
Mountaintop Sports Inc. issued $200,000 of 10-year, 6% bonds, with interest payable semiannually on June 30 and December 31 each year. The bonds were sold at 100. Assuming Mountaintop Sports has a December 31 fiscal year end, what amount should be recorded as interest expense in the journal entry made each six months?
| A. | $3,000 | |
| B. | $6,000 | |
| C. | $12,000 | |
| D. | $120,000
|
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