3 (1 point) Bonds Question: If bonds are issued at a premium, the journal entry to record the bond issuance will include a: O Debit to 'Discount on Bonds Payable' Debit to 'Premium on Bonds Payable' Credit to 'Discount on Bonds Payable' Credit to 'Premium on Bonds Payable' Question 4 (1 point) TVM Question: A student takes out a $20,000 loan. The loan has an annual interest rate of 6%, with interest compounded ANNUALLY. Both the principal and interest will be repaid when the loan comes due in 5 years. How much in total will the student owe when the loan comes due? $26,765 $14,945 $23,185.48 $26,878.33 Question 5 (1 point) Bonds Question: Torrance Corporation issues 10-year bonds with a face value of $12,000,000 and a stated annual interest rate of 7%. The bonds pay interest annually on December 31. The market rate of interest on the date of issue is 8%. What journal entry will the company make to record the bond issue? Dr. Cash 12,000,000 Cr. Bonds Payable 12,000,000 Dr. Cash 12,842,830 Cr. Discount on Bonds Payable 842,830 Cr. Bonds Payable 12,000,000 Dr. Cash 11,194,790 Dr. Discount on Bonds Payable 805,210 Cr. Bonds Payable 12,000,000 Dr. Cash 11,184,580 Dr. Discount on Bonds Payable 815,420 Cr. Bonds Payable 12,000,000 Question 6 (1 point) Bonds Question: If the stated interest rate is HIGHER than the market/effective interest rate, the bonds will be issued at a PREMIUM. True False Question 7 (1 point) Bonds Question: If the stated interest rate EQUALS the market/effective interest rate, the bonds will be issued at a DISCOUNT. True False