18. If a corporation declares a 10 stock dividend on its common stock, the account to be date of declaration is Common Stock Dividends Distributable b. Common Stock c. Pald-in Capital in Excess of Par. d) Stock Dividends. 19. Dillon Corporation splits its common stock 2 for 1, when the market value is $40 per share. Prior to the split, Dillon had 50,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock a. remains the same. b is reduced to $2 per share. c. is reduced to $5 per share. d. is reduced to $20 per share. 20. On January 1, 2017, Meeks Corporation issued $5,000,000, 10-year, 4% bonds at 102. Interest is payable annually on January 1. The Journal entry to record this transaction on January 1, 2017 is a. Cash.... ... 5,000,000 Bonds Payable............ 5,000,000 b. Cash...... Bonds Payable......... ........ 5,100,000 5,100,000 c. Premium on Bonds Payable....... Cash Bonds Payable.............. 100,000 5,000,000 5,100,000 5,100,000 d. Cash... Bonds Payable... Premium on Bonds Payable.............. 5,000,000 100,000 21. The total cost of borrowing is increased only if the a. bonds were issued at a premium. b. bonds were issued at a discount. C. bonds were sold at face value. d. None of the above 2. Martinez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 98 journal entry to record the issuance will show a a. debit to Cash of $2,000,000. b. credit to Discount on Bonds Payable for $40,000. credit to Bonds Payable for $2,040,000. debit to Cash for $1,960,000. Bond interest paid is higher when bonds sell at a discount. lower when bonds sell at a premium. the same whether bonds sell at a discount or a premium. l aminum