On January 1, 2019, Commercial Equipment Sales issued $ 36 comma 000 in bonds for $ 20 comma 700. These are sixminusyear bonds with a stated interest rate of 15%, and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the straightminusline method to amortize the Bond Discount. What amount is debited to Interest Expense on June 30, 2019?

The amount is debited to Interest expense on June 30,2019= $2658

Explanation:

The following calculation is made in order to find out the expense:

Interest expense on June 2019 = Part 1 = 30000 into 12 percent = 3600 into 0.5 = $1800

Part 2 = 30000 minus 19700 = 10300 by 6 = 1716.666 into 0.5 = $858

The part one and the part 2 both are to be added

Now,  = $1800 +  $858

= $2658

Thus, The amount is debited to Interest expense on June 30,2019= $2658

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