1. a company issues $1,000, 8%, 2-year bonds at par values. Interest is payable semiannually. What journal entry does the issuer makes to record this issuance/sale?

a. debits bonds payable for $1,000 and credits cash for $1,000.

b. debits bonds payable for $1,080; credits premium on bonds payable for $80; and credits cash for $1,000.

c. debits cash for $920 and credits bonds payable for $920

d. debits cash for $1,000 and credits bonds payable for $1,000

2. what journal entry does a corporation make to record the payment of a cash dividend on common stock that was declared earlier?

a. debits cash and credits retained earnings

b. debits common dividend payable and credits cash

c. debits retained earnings and credits cash

d. debits retained earnings and credits common dividend payable.