Explain how much interest expense will cramer company report

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Reference no: EM13130264

Cramer Company sold 5-year, 8% bonds on November 1, 2011. The face amount of the bonds was $500,000. Interest is payable on April 30th and November 30th of each year. The bonds were sold to yield 7%. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report in its December 31, 2011, income statement (assume effective interest amortization)?

Reference no: EM13130264

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