8. On December 12, the G. Baker Corporation purchases $13,000 of equipment by issuing a 30-day, 9% note payable. The amount of accrued interest on December 31 is:

9. Convertible bonds may be exchanged for:

cash

the issuing company's goods and services.

an equity interest in the issuing company

10. When the effective-interest method of bond premium amortization is used, the:

interest payment to bondholders will increase after each interest payment.

amount of premium amortized increases with each amortization.

carrying value of the bonds will increase with each amortization.

11. Under the effective-interest method of amortizing bond discount, the interest expense recorded for each semiannual interest payment:

will equal the amount of cash paid for each semiannual interest payment.

is equal to the carrying value of the bond times the stated rate of interest for each semiannual interest period.

is at the same percentage of the bond's carrying value for every interest payment.