1. On January 1, 2005, Sampson issued a $1,000,0000, 6%, 5 year bond, with interest payable on January 1 and July 1. The selling price of the bond on January I was $1,089,778. The market rate of interest when the bond was issued is 4%. Assume Sampson uses the effective interest method to amortize Bond Premium and Bond Discount. Which of the following would be included in the journal entry of January 1, 2006 to record the payment of interest? a. Debit Interest Expense for $43,591 b. Debit Interest Expense for $21,796 c. Debit Interest Expense for $21,631 d. Debit Interest Expense for $65,387 2. On March 31, 2014, Bob's Corporation retired $10,000,000 of bonds at 98.5 The bonds have an unamortized premium of $500,000. How much was the gain or loss on the retirement of the bonds? a. $150,000 loss b. $150,000 gain c. $650,000 gain d. $350,000 loss Haring reported the following data in its financial statements for 2008: Current liabilities $36,000 Interest expense Long-term liabilities 60,000 Income tax expense Stockholders' equity 50,000 Net income $ 6,000 2,400 5,600 21. What is the debt to equity ratio? a. .72 b. 1.92 sha C. 1.2 d. None of the above CA 22. What is the times-interest earned ratio? a. .93 b. 1.33 C. 2.33 janen d. 1.93