3. Refer to Question 3. The entry to record the semiannual interest payment is: A. Interest Expense B. Interest Expense C. Interest Payable D. Interest Expense 6,000 3,000 6,000 3,000 Cash Cash Cash Interest Payable 6,000 3,000 6,000 3,000 On January 1, Southeast Airlines issued S 300,000 of 9%, 5-year, callable bonds when the market interest was 8%. On a date when the carrying value of the bonds is S300500, the bonds are called and retired at 99. Southeast will report a: A. S3,500 Gain on Retirement of Bonds Payable B. S300,000 credit to Bonds Payable. C. $300,500 credit to Cash. D. $3,500 Loss on Retirement of Bonds Payable. For 2019, Lail Company reports beginning total assets of $100 million and ending total assets of S180 million. Beginning common stockholders' equity was $60 million and ending stockholders' equity was $90 million. Net income for 2019 was $45 million. The leverage ratio for 2019 equals: A. 0.53 4, 5. C. 1.94 D. 1.67 on February 1st, Starr Company issued S500 000, 5-year, 4% bonds The market rate atthe time of the sale was greater than 4% so the bonds were sold at 94, Interest is payable July 31th and January 31St. The entry to record the sale of the bonds would include a: A. Debit to Discount on Bonds Payable for $30,000. B. Debit to Cash for $500,000. C. Credit to Cash for $470,000. D. Credit to Bonds Payable for $470,000. 6