5. If bonds are issued at 97, then a. the interest rate is 9.7%. b. a $1,000 bond sold for $97. c. a $1,000 bond sold for $970. d. both a and care correct. 6. The issuance of bonds is classified on the Statement of Cash Flows as a(n) a. con-cash activity. b. operating activity c. investing activity. d. financing activity. 7. Which of the following preferred stock features authorizes the corporation to redeem (buy back) shares at a fixed price on or after a specified date? a. the call provision b. the preemptive right c. the conversion privilege d. the residual claim Landmark Company This company reported the following information in the stockholders' equity section of its December 31, 2019 balance sheet: 7% Cumulative, Non-participating Preferred Stock, $100 par, 500 shares authorized, issued, and outstanding, callable at par value $ 50,000 Common Stock, S12 par, 100,000 shares authorized 600,000 Additional Paid-in Capital-Common Stock 25,000 Retained Earnings 825,000 8. Refer to Landmark Company. If the company repurchased 500 shares of its common stock for $20 per share, what is the amount of total stockholders' equity after this transaction? a. $1,510,000 b. $1,500,000 c. $1,494,000 d. $1,490,000 9. The city of South Park issues $100,000 of bonds at 102.5. The journal entry to record the issuance would include a. a debit to cash of $100,000. b. a credit to Bonds Payable of $102,500. c. a credit to Premium on Bonds Payable of $2,500. d. all of the above