1. Adjusting entry to record the amortization of a discount on bonds payable is a. debit interest expense, credit discount on bonds payable b. debit interest expense, credit cash c. debit bonds payable, credit interest expense d. debit discount on bonds payable, credit interest expense 2. An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $47.50 per share. What is the amount of gain or loss on the sale? a. $400 gain b. $400 loss c. $4,350 gain d. $16,800 loss