1. Discount on bonds payable and Premium on bonds payable are examples of:

A.equity accounts.

B.estimated accounts.

C.contraminusaccounts.

D.companion accounts.

2.$300,000 of 10%, 20year bonds were sold for $325,000 on January 1. The bonds require semiannual interest payments on June 30 and December 31. The entry to record the June 30 interest payment on the bonds would be to: (Round your final answer to the nearest dollar.)

A.debit Interest Expense $14,375; credit Cash, $14,375.

B.debit Interest Expense $15,625; credit Premium on bonds payable, $625; credit Cash, $15,000.

C.debit Interest Expense $15,000; credit Cash, $15,000.

D.debit Interest Expense $14,375; debit Premium on bonds payable, $625; credit Cash, $15,000.

3.$200,000 of 7%, 25year bonds were sold for $170,000 on January 1. The bonds require semiannual interest payments on June 30 and December 31. The entry to record the June 30 interest payment on the bonds would be to:

A.debit Interest Expense $6,400; debit Discount on bonds payable, $600; credit Cash, $7,000.

B.debit Interest Expense $7,000; credit Cash, $7,000.

C.debit Interest Expense $7,600; credit Discount on bonds payable, $600; credit Cash, $7,000.

D.debit Interest Expense $7,600; credit Cash, $7,600.