26) On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the issuance of the bond is: A) Debit Cash $312,177; credit Bonds Payable $312,177. B) Debit Cash $312,177; credit Discount on Bonds Payable $12,177; credit Bonds Payable $300,000. C) Debit Cash $312,177; credit Premium on Bonds Payable $12,177; credit Bonds Payable $300,000. D) Debit Cash $300,000; debit Premium on Bonds Payable $12,177; credit Bonds Payable $312,177. E) Debit Bonds Payable $300,000; debit Bond Interest Expense $12,177; credit Cash $312,177.

27) Sharmer Company issues 5%, 5 year bonds with a par value of $1,000,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the Present Value of $1 factor for 3% and 10 semi-annual periods is .7441 and the Present Value of an Annuity factor for the same rate and period is 8.5302? A) $1,000,000 B) $786,745 C) $1,213,255 D) $1,250,000 E) $957,355

28) The board of directors of a corporation: A) Are elected by the corporate registrar. B) May not also be executive officers of the corporation, due to the separate entity principle. C) Are responsible for day-to-day operations of the business. D) Are responsible for and have final authority for managing corporate activities. E) Do not have the power to bind the corporation to contracts, due to lack of mutual agency.

29) The number of shares that a corporation's charter allows it to sell is referred to as: A) Common stock. B) Outstanding stock. C) Preferred stock. D) Issued stock. E) Authorized stock.