15) Which of the following statements is true if a bond is issued at an amount less than its face value? A) The bond's stated rate is the same as the prevailing market rate at the time of sale B) The bond's stated rate is lower than the prevailing market rate at the time of sale C) The bond's stated rate is higher than the prevailing market rate at the time of sale. D) The bond is not secured by specific assets of the issuer. 15) 16) On July 1, 2018, Electrical Services issued $37,000 of 8% bonds that mature in five years The bonds were issued at a premium, for a total of $38,665. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders? 16) A) $2960 B) $1480 C) $1547 D) $3093 17) The Technology Company issues $517,000 of 11%, 10-year bonds at 104 on March 31, 2018, The 17) bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. Calculate the net balance that will be reported for the bonds on the September 30, 2018 balance sheet. (Round your intermediate answers to the nearest dollar.) A) $537,680 B) $517,000 C) $536,646 D) $538,714 18) Routing Solutions paid $210,000 to acquire Tabletz, Inc., an electronic gadget-advertising website. 18) At the time of the acquisition, Tabletz's balance sheet reported total assets of $210,000 and liabilities of $105,000. The fair market value of Tabletz's assets was $210,000. The fair market value of its liabilities was $105,000. How much goodwill did Routing Solutions purchase as part of the acquisition of Tabletz? A) $157,500 B) $210,000 C) $52,500 D) $105,000 19) A company's accountant capitalized a payment that should have been recorded as a revenue expenditure. How will this error affect the company's financial statements? A) Expenses will be overstatecd C) Liabilities will be overstated. B) Assets will be overstated. D) Net income will be understated. 20) 20) Trading debt investments are classified on the balance sheet as A) current liabilities B) current or long-term assets, depending on how long the investor intends to hold the debt securities C) intangible assets D) current assets 21) A) Debt securities represent a credit relationship with another company or governmental entity B) Debt securities include common and preferred stock. C) Debt securities include Treasury bills D) Debt securities typically pay interest for a fixed period 21) Regarding debt securities, which of the following statements is incorrect? 22) B) debt to equity ratio will be more than 1 D) debt to equity ratio will be negative 22) If a company is financing more assets with debt than with equity, the A) debt to equity ratio will be equal to 1 C) debt to equity ratio will be between 0 to 1