17.On January 1 of Year 1, Congo Express Airways issued $3,600,000 of 8% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,300,000 and the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized at a rate of $10,000 every six months. The company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue (including interest) in the amount of: Multiple Choice $4,024,000. $3,176,000. $3,880,000. $3,320,000. $3,464,000.

18. Giannis Company has 100,000 shares of $10 par value common stock outstanding. Giannis declares a 10% stock dividend on July 1 when the stocks market value is $40 per share. The stock dividend is distributed on July 20. The journal entry for the declaration of the stock dividend is:

19. Use of preferred stock to increase return to common stockholders is an example of:

Multiple Choice

Financial leverage.

Discount on stock.

Premium on stock.

Preemptive right.

Capital gain.

20. Aviation Incorporated has 125,000 shares authorized, 115,000 shares issued and no treasury stock. Determine the number of shares outstanding:

Multiple Choice

125,000.

115,000.

10,000.

0.

240,000.