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1. A corporation issues $500,000 of 20-year, 7% bonds dated January 1 at 95. The journal entry to record the issuance will include Group of

1.

A corporation issues $500,000 of 20-year, 7% bonds dated January 1 at 95. The journal entry to record the issuance will include

Group of answer choices

a credit to Bonds Payable for $500,000.

a credit to Premiums on Bonds Payable for $25,000.

a debit to Interest Expense for $25,000.

a credit to Discount on Bonds Payable for $25,000.

a debit to Cash for $500,000.

2.

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at

Group of answer choices

the conversion rate

a premium.

the termination rate

a discount.

par.

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