On April 1, year 1, Mondale Corporation issues $38 million of 6%, 15-year bonds payable at...

Transcribed Image Text:

On April 1, year 1, Mondale Corporation issues $38 million of 6%, 15-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. Interest expense on this bond issue reported in Mondale's Year 1, income statement is: Multiple Choice $760,000. $1,520,000. $2,280,000. $1,710,000. On April 1, year 1, Mondale Corporation issues $38 million of 6%, 15-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. Interest expense on this bond issue reported in Mondale's Year 1, income statement is: Multiple Choice $760,000. $1,520,000. $2,280,000. $1,710,000.