Question

On November 1, 2017, Austin Services issued $304,000 of five-year bonds with a stated rate of 11%. The bonds were issued at par, and Austin makes semiannual payments on April 30 and October 31. On December 31, 2017, Austin made an adjusting entry to accrue interest at year-end. No further entries were made until April 30, 2018, when the first payment was made. What amount of interest expense was recorded for the period of January 1 to April 30, 2018? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

Answer 1

Bonds Amount				304000
Stated rate of interest				11%
Semi Annual Interest				16720
(304000*11%*6/12)
Less: Interest expense payable on Dec31				5573
(304000*11%*2/12)
Interest expense for period				11147
(Jan-April)
Journal Entry:
Date	Accounts title and explanations				Debit $	Credit $
30-Apr	Interest expense Account Dr.				11147
	Interest expense Payable Account Dr.				5573
	Cash Account					16720