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Jones Company issued bonds with a $110,000 face value on January 1, Year 1. The...

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Accounting

Jones Company issued bonds with a $110,000 face value on January 1, Year 1. The five-year term bonds were issued at 98 and had a 8.00% 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, Year 2 balance sheet would be:

Multiple Choice

  • $107,800.

  • $106,920.

  • $108,680.

  • $108,240.

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