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Problem:

Joiner Company issued bonds with a $100,000 face value on January 1, 2013. 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. Joiner amortizes the bond discount using the straight-line method. Based on this information:

Required:

Question: The total amount of liabilities shown on Joiner's December 31, 2014 balance sheet would be:

$98,200.
$97,000.
$95,800.
$97,600.

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164932

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