Jones Company issued bonds with a $200,000 face value on January 1, 2016. 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. 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, 2017 balance sheet would be:
A. $191,600.
B. $194,000
. C. $196,400.
D. $195,200.
