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How is the interest expense calculated

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Point 1: Gedunk, Inc. issues 200 10-year 8% bonds to yield 10%. Although the bond date is 1/1/A, Gedunk issues the bonds on 4/1/A as part of their annual "April Fools' Day" celebration. Provide a. the issuance entry and b. the entry to record their first interest payment. Of course, Gedunk uses the 'real' interest method. [a. cash received: 179780; b. interest expense 13184]

Question 1: How is the interest expense calculated in part B ? Please show steps.

Reference no: EM132488382

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