11. On January 1, 2020, NEIU Company, a calendar-year company, issued $750,000 of notes payable, of which $187,500 is due on December 31 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is

a. Current Liabilities, $750,000.

b. Long-term Debt, $750,000.

c. Current Liabilities, $187,500; Long-term Debt, $375,000.

d. Current Liabilities, $187,500; Long-term Debt, $562,500.

12. On January 1, 2020, El Centro Corporation issued $2,500,000, 20-year, 8% bonds at 98. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2020 is

a. Cash....................................................................................... 2,500,000

Bonds Payable............................................................. 2,500,000

b. Cash....................................................................................... 2,700,000

Bonds Payable............................................................. 2,700,000

c. Discount on Bonds Payable.................................................. 50,000

Cash....................................................................................... 2,450,000

Bonds Payable............................................................. 2,500,000

d. Cash....................................................................................... 2,550,000

Bonds Payable............................................................. 2,500,000

Premium on Bonds Payable......................................... 50,000

13. A $500,000 bond was retired at 102 when the carrying value of the bond was $495,000. The entry to record the retirement would include a

a. gain on bond redemption of $15,000.

b. loss on bond redemption of $15,000.

c. loss on bond redemption of $5,000.

d. gain on bond redemption of $5,000.

14. Which of the following statements is not considered a disadvantage of the corporate form of organization?

a. Additional taxes

b. Government regulations

c. Limited liability of stockholders

d. Separation of ownership and management

15. Stone Container Corporation began business in 2020 by issuing 10,000 shares of $2 par common stock for $10 per share and 5,000 shares of 8%, $100 par preferred stock for par. At year end, the common stock had a market value of $11.50. On its December 31, 2020 balance sheet, Stone Container would report

a. Common Stock of $100,000.

b. Common Stock of $115,000.

c. Paid-In Capital of $520,000.

d. Paid-In Capital of $600,000.