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6, at face value plus accrued inter y 1, 2016. Interest is paid on Janu

6, at face value plus accrued inter y 1, 2016. Interest is paid on Janu

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question: Jones Corporation issued $400,000 of its 8%, 10-year bonds, dated January 1, 2016, at face value plus accrued interest on May 1, 2016. Interest is paid on January 1 and July 1. Jones uses the most common method to record the sale of the bonds between interest payment periods. Refer to Exhibit 14- 6. The amount of bond interest expense reported on the year-end 2016 income statement would be a. $17,538 b. $21,333 c. $21,384 d. $32,000
Transcribed Image Text:Question: Jones Corporation issued $400,000 of its 8%, 10-year bonds, dated January 1, 2016, at face value plus accrued interest on May 1, 2016. Interest is paid on January 1 and July 1. Jones uses the most common method to record the sale of the bonds between interest payment periods. Refer to Exhibit 14- 6. The amount of bond interest expense reported on the year-end 2016 income statement would be a. $17,538 b. $21,333 c. $21,384 d. $32,000
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