1. On January 1, a company issues bonds dated January 1 with a par value of $260,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $271,091. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.)

Multiple Choice

• Debit Bond Interest Expense $10,209; credit Discount on Bonds Payable $1,109; credit Cash $9,100.

• Debit Bond Interest Expense $7,991; debit Premium on Bonds Payable $1,109; credit Cash $9,100.

• Debit Bond Interest Expense $10,209; credit Premium on Bonds Payable $1,109; credit Cash $9,100.

• Debit Bond Interest Expense $7,991; debit Discount on Bonds Payable $1,109; credit Cash $9,100.

• Debit Interest Payable $9,100; credit Cash $9,100

• 2. Mayan Company had net income of $33,180. The weighted-average common shares outstanding were 8,400. The company has no preferred stock. The company's earnings per share is:

• Multiple Choice

• $1.17.

• $4.01.

• $5.00.

• $3.95.

• $3.89.

• 3. James Company has 2,500 shares of $100 par preferred stock, which were issued at par. It also has 20,000 shares of common stock outstanding, and its total stockholders' equity equals $600,000. The book value per common share is:

  Multiple Choice

• $26.67.

• $17.50.

• $15.56.

• $30.00.

• $100.00.