7. A company issued 10-year, 7% bonds with a par value of $100,000. The company received $96,526 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is: A) $7,347.40. B) $3,500.00. C) $3,673.70. D) $7,000.00. E) $3,326.00. The Premium on Bonds Payable account is a(n): 2) A) Contra asset account. B) Contra revenue account. C) Adjunct liability account. D) Equity account. E) Revenue account. Adonis Corporation issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adonis received $206,948 in cash proceeds. Which of the following statements is true? A) Adonis must pay $206,948 at maturity plus 20 interest payments of $8,000 each. B) Adonis must pay $200,000 at maturity plus 20 interest payments of $7,500 each. C) Adonis must pay $200,000 at maturity and no interest payments. D) Adonis must pay $206,948 at maturity and no interest payments. E) Adonis must pay $200,000 at maturity plus 20 interest payments of $8,000 each. 3)