Use the Following to Answer Questions

question 82

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 total amount of liabilities shown on Jones's December 31,2017 balance sheet would be:

• A)$191,600.
• B)$194,000.
• C)$196,400.
• D)$195,200.

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Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, often indicating a firm's efficiency.

Corn Market

The trading and economic sector focused on the cultivation, distribution, and sale of corn as a commodity.

Market Supply

The total amount of a specific good or service that is available to consumers in a market at current prices.

Increasing-cost Industry

An increasing-cost industry is one in which the entry of new firms raises the average costs of production, often due to limited resources or increasing prices for inputs.