13. A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2010 balance sheet? a. $19,612,643 b. $20,000,000 c. $19,625,125 d. $19,608,310

14. Kant Corporation retires its $100,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $96,250. The entry to record the redemption will include a a. credit of $3,750 to Loss on Bond Redemption. b. credit of $3,750 to Discount on Bonds Payable. c. debit of $5,750 to Gain on Bond Redemption. d. debit of $2,000 to Premium on Bonds Payable.

15. At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the a. declaration of a stock split. b. declaration of a stock dividend. c. purchase of treasury stock. d. payment in full of subscribed stock.

16. What effect does the issuance of a 2-for-1 stock split have on each of the following?

Par Value per Share Retained Earnings a. No effect No effect b. Increase No effect c. Decrease No effect d. Decrease Decrease