1. The journal entry to record the issuance of bonds will include: a. A credit to cash b. A debit to bonds payable C. A credit to bonds payable d. Both "A credit to cash" and "A debit to bonds payable" are correct. 2. Which of the following is not used to calculate the amount of interest to be paid on bonds? a. Stated interest rate b. Face value C. Maturity date d. Market value 3. On January 1, Zee Products sells bonds at a face value of $250,000. Interest rate is 6%, payable semi-annually. What is the amount of interest expense on July 1? a. $15,000 b. $7,500 C. $3,750 d. $0 4. The journal entry to record the payment of interest will include: a. A debit to cash b. A debit to interest expense C. A credit to interest expense d. Both "A debit to cash" and "A credit to interest expense" are correct. 5. If Interest on bonds of $4,500 is paid semi-annually for 10 years, what is the total cost of borrowing $150,000? a. $90,000 b. $45,000 C. $105,000 d. $60,000