6. On February 19, Starr Company issued $500,000. 5-year, 4% bonds. The market rate at the time of the sale was greater than 4% so the bonds were sold at 94. Interest is payable July 31th and January 31". 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. 7. Refer to Question 6. Starr Company uses the straight-line method to amortize discount on the bonds, the entry to record the first interest payment would include: A. Credit to Cash for $20,000. B. Debit to Interest Expense for $13,000. C. Debit to Interest Expense for $6,000. D. Debit to Discount on Bonds Payable for $3,000. 7 Refer to Question 6. Starr Company uses the straight line methods to ammortize discount on the bonds, the entry to record the first interest payment would include: A. Credit to Cash for $20,000 B. Debit to Interest Expense for $13,000. C Debit to Interest Expense for $6,000. D. Debit to Discount on Bonds Payable for $3,000. On July 1, 2019, a company issued $200,000, 8-year, 4% bonds payable for $186,944, 31. Using the effective interest method of amortization, the December 31, 2019, carrying when the market rate of interest was 5%. Interest payment dates are June 30 and December amount of the bonds (rounded to the closest dollar) will be: A. $186,270 B. $199,326 C. $187,618 D. $200,000 9. When a company uses the effective interest method to amortize bond discount, A. Interest expense on each semi-annual interest payment date will be a constant amount. B. Interest expense is calculated as principal contract rate 6/12. C. Interest expense will increase each period as the carrying amount of the bonds increases. D. Both B and C are correct. 10. Which of the following is not a characteristic of a financing lease? A. The Lease transfers ownership of the asset to the lessor at the end of term. B. The Lease term is for the major part of the remaining economic life. C. The Lease grants the option, that the lessee is reasonably certain to exercise, for the