21) The Andrea Company sold a $1,000,000 face value of 6% 10-year bond on January 1, 2019 The bond was sold to yield 3%. On January 1, 2019, the journal entry would be: A. Cash 1,255,906.09 Bond Payable 1,000,000.00 Premium on B/P 255,906.09 Issued bond B. Cash Bond discount Bond Payable issued bond 1,000,000.00 255,906.09 1,255,906.09 1,000,000.00 C. Cash Premium on B/P Bond Payable issued bond 2551906.09 744,093.91 D. Cash Bond discount Bond Payable issued bond 744,093.91 255,906.09 1,000,000.00 E. None of these 22) Still on Andrea, 6% coupon rate, sold to yield 3% on January 1, 2019, the Interest expense for 2019 would be: A. $ 36,911.31 B. $ 30,000.00 C. $ 60,000.00 D. $ 37,677.18 E. None of the above Your Answer 23) Still Andrea - If the bonds had been sold to yield 8%, with everything else the same, the journal entry to record the issuance on January 1, 2019 would have included A. a debit to bond discount of $134,201.63 B. a credit to bond premium of $134,201.63 C. a credit to bond payable of $865,798.37 D. a debit to bond discount of $865,798.37 E. a debit to interest expense of $6,000 Your Answer 24) Charleigh issued 1,000 shares of $5 par value stock on June 23, 2019 for $10 per share. When she issued the stock, the credit to common stock would have been A. $ 5,000.00 B. $ 10,000.00 C. $ 15,000.00 D. $ 18,512.34 E. None of the above Your Answer 25) Charleigh (see prior question) declared a $0.10 share per share dividend on Sept 30, 2019, payable Oct 31 to shareholders of record on Oct 15. The journal entry on Sept 30 would include a credit to A. Retained Earnings B. Dividends Payable C. Cash D. Dividends receivable E. None of the above Your Answer 26) Still Charleigh - The journal entry on Oct 15 would include a credit to A. Retained Earnings B. Dividends Payable C. Cash D. Dividends receivable E. None of the above Your Answe 27) Kylie will sell you a used car for $500. The deal is, you put no money down and pay for the car in five equal annual payments that include interest at 6% The first payment is due one year from today!! You called the bank and they said that they would charge you 10% for a similar loan. How much are the payments if you buy the car from Kylie? A. $ 100 + interest at 6% B. $ 100 + interest at 10% C. $ 118.70 D. $ 131.90 E. None of the above Your Answer 28) How much are you really paying for the car under Kylie's deal? A. $ 405.23 B. $320.00 C. $ 449.97 D. $ 571.06 E. None of the above Your Answer 29) If you amortize the Kylie deal properly, the principal balance after the first payment will be A. $ 366.09 B. $ 331.26 $ 320.00 $376.27 E. None of the above Your
