17. Your company sells $43,000 of one-year, 10% bonds for an issue price of $40,500. The journal entry to record this transaction will include a credit to Bonds Payable in the amount of:

a. $44,800.

b. $43,000.

c. $40,500.

d. $47,300.

23. On October 1, 2013, you borrow $207,000 at 12% interest for 3 years and record the promissory note. On April 1 and October 1 you are required to make semi annual interest payments to your creditor. On December 31, 2013, your adjusting journal entry should:

a.debit Interest Expense for $12,420 and credit Cash for $12,420.

b. debit Interest Expense for $12,420 and credit Interest Payable for $12,420.

c. debit Interest Payable for $6,210 and credit Interest Expense for $6,210.

d. debit Interest Expense for $6,210 and credit Interest Payable for $6,210.

25. A stock dividend:

a.will not change any of the accounts within stockholders' equity.

b. will reduce retained earnings just like a cash dividend.

c. is recorded in the same way as a stock split.

d. will reduce total stockholders' equity just like a cash dividend.

The balance in Retained Earnings represents the amount of capital contributed by owners in exchange for stock plus the amount of net income earned.True/False

IBM issues 200,000 shares of stock with a par value of $0.04 for $153 per share. Three years later, it repurchases these shares for $83 per share. IBM records the repurchase in which of the following ways?

a. Debit Common Stock for $8,000, debit Additional Paid-in Capital for $16,592,000 and credit Cash for $16.60 million.

b. Debit Treasury Stock for $16.60 million and credit Cash for $16.60 million.

c. Debit Stockholders' Equity for $30.60 million, credit Additional Paid-in Capital for $16.60 million and credit Cash for $16.60 million.

d. Debit Common Stock for $8,000, debit Additional Paid-in Capital for $30,592,000 and credit Cash for $30.60 million.