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Eureka Company issued $290,000 in bonds payable on January 1, 2016. The bonds were issued at...

Eureka Company issued $290,000 in bonds payable on January 1, 2016. The bonds were issued at face value and carried 4-year term to maturity. They had a 5% stated rate of interest that was payable in cash on January 1st of each year beginning January 1, 2017. Based on this information, the amount of total liabilities appearing on the December 31, 2016 balance sheet would be:

$290,000. $288,550. $304,500. $14,500.

Solutions

Expert Solution

Answer : $304,500

Total Liabilities on the December 31,2016

Bonds Payable $ 290,000
Interest Payable on Bond ( $290,000* 5%) $ 14,500
Total Liabilities $ 304,500

ekkarill92 answered 2 years ago
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