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40 On March 1, 2015, Vinnie Services issued a 5% long-term notes payable for $15,000. It is payable over a 3-year term in 55,000 principal installments on March 1 of each year, beginning March 1, 2016. Which of the following entries needs to be made at March 1,20157 A) Current Portion of Long-Term Notes Payable 15,000 Cash 5,000 C) Cash 15,000 Long-Term Notes Payable 15,000 D) Long-Term Notes Payable 15,000 41) The retained earnings of a corporation is the: A) internally generated capital that from the direct investment of employees. B) externally generated capital that is raised from banks and other creditors C) internally generated capital that is raised from profitable operations. D) externally generated capital that is contributed by shareholders. 42) A bond is issued at premium A) when a bond's stated interest rate is equal to the market interest rate. B) when a bond's stated interest rate is less than the effective interest rate. C) when a bond's stated interest rate is higher than the market interest rate D) when a bond's stated interest rate is less than the market interest rate. 43) Which of the following is true of a Premium on Bonds Payable account? A) It is subtracted from the Bonds Payable balance and shown with the current liabilities on the B) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the C) It is added to the Bonds Payable balance and shown with long-term liabilities on the balance D) It is added to the Bonds Payable balance and shown with owner's equity on the balance sheet balance sheet balance sheet. sheet. 44) Which of the following would be included in the entry to record the payment of a previously declared dividend of $0.25 per share on 12,500 shares of common stock? A) Retained Earnings would be debited for $3,125. B) Retained Earnings would be credited for $3,125, C) Cash would be debited for $3,125. D) Dividends Payable would be debited for $3,125. 45) A corporation declares a dividend of s0.50 per share on 10,000 shares of common stock. Which of following would be included in the entry to record the declaration? A) Retained Earnings would be credited for $5,000. B) Retained Earnings would be debited for $5,000. C) Dividends Payable-Common would be debited for $5,000. D) Paid-In Capital in Excess of Par-Common would be credited for $5,000. the