Answer:
The amount of interest expense was recorded for the period of January 1 to April 30, 2018 would be $11,147
Explanation:
According to the given data we have the following:
Bonds Amount=$304,000
Stated rate of interest=11%
To calculate the amount of interest expense was recorded for the period of January 1 to April 30, 2018 we have to calculate the following formula as follows:
Interest expense for period(Jan-April)=Semi Annual Interest-Interest expense payable on Dec31
Semi Annual Interest=$304,000*11%*6/12= $16,720
Interest expense payable on Dec31=$304,000*11%*2/12=$5,573
Therefore Interest expense for period(Jan-April)=$16,720-$5,573=$11,147
The Journal Entry would be as follows:
Debit $ Credit $
30-Apr Interest expense Account Dr. $11,147
Interest expense Payable Account Dr. $5,573
Cash Account $16,720
