Use the Following to Answer Questions

question 86

Multiple Choice

Use the following to answer questions
Jones Company issued bonds with a $200,000 face value on January 1,2016.The five-year term bonds were issued at 97 and had a 7 ½ % stated rate of interest that is payable in cash on December 31st of each year.Jones amortizes the bond discount using the straight-line method.Based on this information:
-The amount of cash outflow from operating activities shown on Jones's December 31,2017 statement of cash flows would be:

• A)$15,000.
• B)$16,200.
• C)$13,800.
• D)$17,400.

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Definitions:

Concrete-Abstract

Refers to the continuum from concrete, tangible concepts to abstract, theoretical ideas or principles.

Recall

The act of retrieving information or events from memory without the explicit cues provided for in recognition tasks.

Snail

A slow-moving, terrestrial or freshwater mollusk with a soft, unsegmented body encased in a typically spiral shell.

Caterpillar

The larval stage of a butterfly or moth, characterized by its segmented body and growth through molting.