[The Following Information Applies to the Questions Displayed Below

question 72

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, Jones Company issued bonds with a $200,000 face value, a stated rate of interest of 7.5%, and a 5-year term to maturity. The bonds were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method.

-What is the total amount of liabilities shown on Jones' balance sheet at December 31,Year 2?

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

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Definitions:

Interquartile Range

A measure of variability, based on dividing a dataset into quartiles, that indicates the spread of the middle 50% of data points.

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Mean

The average of a set of numerical values, calculated by summing them together and dividing by the number of values.