Cable Company reported bond interest expense of $40,000 for the current year. During the year, the balance in the premium on bonds payable account decreased by $1,500. What was the amount of cash paid for interest expense during the year?

Question

Business

Layne Galloway

21 February, 00:34

Cable Company reported bond interest expense of $40,000 for the current year. During the year, the balance in the premium on bonds payable account decreased by $1,500. What was the amount of cash paid for interest expense during the year?

+1

Answers (1)

Know the Answer?

Jaquan Franco · Answer 1

The amount of cash paid for intrest expense during the year was $ 41.500.

Explanation:

Cash paid for interest expense = bond interest expense + Decrease in premium on bonds payable account

= $ 40,000 + $ 1,500

= $ 41,500

Therefore, the amount of cash paid for intrest expense during the year was $ 41.500.