1. When bonds are issued with stock purchase warrants, a portion of the proceeds should be allocated to paid-in-capital for bonds issued with

Detachable Warrants Nondetachable Warrants

Group of answer choices

a. Yes No

b. No Yes

c. No No

d. Yes Yes

2.

On May 1, Year 1, Fox Co. issued, at 103 plus accrued interest, 500 of its 12%, $1,000 bonds, dated January 1, Year 1, which mature on January 1, Year 5. Interest is payable semiannually on January 1 and July 1. The entry to record the issuance of the bonds is:

Group of answer choices

a. Cash 535,000 Interest payable 20,000 Bonds payable 500,000 Premium on bonds payable 15,000

b. Cash 535,000 Bonds payable 500,000 Premium on bonds payable 35,000

c. Cash 525,000 Interest payable 10,000 Bonds payable 500,000 Premium on bonds payable 15,000

d. Cash 515,000 Interest payable 20,000 Bonds payable 500,000 Premium on bonds payable 35,000