6, at face value plus accrued inter y 1, 2016. Interest is paid on Janu
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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