1.Tempest Co. purchased 60, 6% Urich Company bonds for $60,000 cash. Interest is payable semiannually on July 1 and January 1. If 30 of the securities are sold on July 1 for $32,000, the entry would include a credit to Gain on Sale of Debt Investments for

$1,600.

$2,000.

$1,750.

$1,800.

2.Martinez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 98. The journal entry to record the issuance will show a

debit to Cash for $1,960,000.

credit to Bonds Payable for $2,040,000.

credit to Discount on Bonds Payable for $40,000.

debit to Cash of $2,000,000.