12. If Metlock, Inc. issues 5000 shares of $10 par value common stock for $390000, the account

Paid-in Capital in Excess of Par Value will be credited for $340000.

Cash will be debited for $340000.

Paid-in Capital in Excess of Par Value will be credited for $50000.

Common Stock will be credited for $390000.

8. Cullumber Company received proceeds of $1071000 on 10-year, 6% bonds issued on January 1, 2019. The bonds had a face value of $1136000, pay interest annually on December 31, and have a call price of 105. Cullumber uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2021?

$1136000

$1077500

6. A corporation issues $291000, 10%, 5-year bonds on January 1, 2020, for $278700. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized in December 31, 2020s adjusting entry is

$26640.

$29100.

$2460.

$31560.

$1084000

$1123000