1. On January 1, 2015, Y. Knott Inc. issued $100,000 in bonds payable with an interest coupon of 10%. Since the market rate of interest was close to 12%, Y. Knott had to issue the bonds at 94 (that is, the cash received was 94% of face amount). The bonds pay annual interest on January 1^st of each year starting 1/1/2016 and principle is due in full on 1/1/2018. The company uses the straight-line method to amortize bond discounts and premiums. The journal entry to record the issuance of the bonds includes a:

Group of answer choices

Debit to Discount on Bonds Payable

None of the other answers are correct

Debit to Premium on Bonds Payable

Debit to Retained Earnings

2. (Transaction 1) the company purchases 10,000 shares of Treasury Stock for $40 per share; (Transaction 2) the company sells 5,000 shares of Treasury stock for $50 per share; and (Transaction 3) the company sells the remaining 5,000 shares of Treasury Stock for $20 per share. The journal entry to record Transaction #1 is:

Debit Retained Earnings, Credit Cash

Debit Treasury Stock, Credit Cash

Debit Cash, Credit Treasury Stock

Debit Paid in Capital from Treasury Stock, Credit Cash

3.Based on the following 3 transactions: (Transaction 1) the company purchases 10,000 shares of Treasury Stock for $40 per share; (Transaction 2) the company sells 5,000 shares of Treasury stock for $50 per share; and (Transaction 3) the company sells the remaining 5,000 shares of Treasury Stock for $20 per share. The journal entry to record Transaction #2 is:

Debit Treasury Stock, Credit Cash

None of the other answers are correct

Debit Cash, Credit Retained Earnings

Debit Cash, Credit Treasury Stock and Paid in Capital form Treasury Stock

4. The journal entry to record the declaration of a cash dividend is:

Group of answer choices

Debit Dividends Payable, Credit Cash Dividends

None of the other answers are correct

Debit Retained Earnings, Credit Cash

Debit Cash Dividends, Credit Dividends Payable

5. The journal entry to record the payment of a cash dividend is:

Group of answer choices

Debit Retained Earnings, Credit Cash

Debit Cash, Credit Dividends Payable

None of the other answers are correct

Debit Dividends Payable, Credit Cash