1. If bonds with a face value of s100,000 are issued at 105, what amount is recorded in premium on bands payable account? a. s105,000 5. S105 C. 55,00 d. 5100,500 2. When bands are issued at a premium: 9 DONI a. The market rate of interest is higher than the stated rate h. The market rate and the stated rate of interest are the same C. The stated rate of interest exceeds the market rate d. None of these choices are correct. to yield the bond's carrying value. 3. The premium on bonds payable is added to a. Cash account n. Honds payable account C. Interest expense account d. Cash eccount and bonds payable account 4. If interest paid is $4,00D and premium amortized is $2xi, how much will go into the interest expense account a. 52,800 h. $4,200 C. $4,000 d. so 5. What infamation does the amortization schedule provide? a. The amounts of cash ba be paid 1. The premium to be amortized C. The initial expense to be recognized d. All of these chaices are correct. 6. How would you calculate the amount of premium amortized? a. Dividing the premium at issuance with the number of interest payments. b. Dividing the premium at issuance with the life of the bond. c. Dividing the premium at issuance with the amount at maturity. d. Dividing the premium at issuance with the face value of the bond