10) ABC Company is in the process of issuing bonds. The bonds have a stated interes of 6%, which is 2% above the current market rate. What effect will the two interes rates have on the bond issue price? A) The issue price will equal the bond's face value. B) The issue price will be above the bond's face value. C) The issue price will be below the bond's face value. D) Cannot determine without knowing the face value. 11) Which of the following line items are not found on a sole proprietorship's statement owner's equity? A) Withdrawals C) Net income B) Retained Earnings D) Capital 12) What does the par value of a stock represent? A) It is a legal concept not related to the market value of a stock B) The current market value of a stock C) The amount that would be paid if a stock was purchased by the issuing company D) The average market value of a stock for the year to date 13) A company sells 1 million shares of common stock with no par value for $15 a share. In recording the transaction, it would debit: A) Cash and credit Common Stock for $15 million. B) Common Stock and credit Additional Paid-in Capital for $15 million. C) Cash and credit Additional Paid-in Capital for $15 million. D) Common Stock and credit Cash for $15 million. 14) A company issues 1 million shares of preferred stock with a par value of $2 at its market price of $26 per share. The issuance should be recorded with a debit to Cash for A) $2 million and a credit to Preferred Stock for $2 million. B) S26 million and a credit to Preferred Stock for $26 million. C) $26 million, a credit to Preferred Stock for S2 million, and a credit to Additional Paid-in Capital for $24 million. D) $26 million, a credit to Additional Paid-in Capital for S2 million, and a credit to Preferred Stock for $24 million. ) A company's cash flows from investing activities include cash transactions relating