Use the Following to Answer Questions

question 14

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 interest expense shown on Jones's December 31,2016 income statement would be:

• A)$16,200.
• B)$21,000.
• C)$15,000.
• D)$13,800.

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Definitions:

Effective

Achieving the intended result or having an intended impact, often used to describe strategies, methods, or products.

Public Relations

The management of communication between an organization and its publics to build, manage, and sustain its positive image.

Marketing Campaign

A coordinated series of steps that include promotion of a product or service through various channels and strategies to reach a specific audience.

External Factors

Influences that impact a business or its operations that originate outside of the company, including economic, social, political, and technological factors.