Everest Company issued $100,000 in bonds payable on January 1, 2013. The bonds were issued at face

Question:

Everest Company issued $100,000 in bonds payable on January 1, 2013. The bonds were issued at and carried 5-year term to maturity. They had a 6% stated rate of interest that was payable in cash on January 1st of each year beginning January 1, 2014. Based on this information, the amount of total liabilities appearing on the December 31, 2013 would be:
A. $100,000
B. $106,000
C. $99.400.
D. $6.000
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...