Choose your answers from the option lists provided to indicate whether the transaction increased, decreased, or had no effect on the balances of bond discount, bond premium, and bonds payable. Each choice may be used once, more than once, or not at all. Transaction 1. Smith issued bonds payable with a nominal rate of interest that was less than the market rate of interest. 2. Smith issued bonds convertible to common stock for an amount in excess of the bonds' face amount. 3. On July 1, Year 1, Smith issued a 10-year bond with a face amount of $200,000. The bond has a stated rate of 10%, and interest is payable annually on January 1. The total proceeds from the issuance of the bond on July 1, Year 1, were $208,000. 4. Smith issued bonds with detachable stock warrants for a total amount equal to the face amount of the bonds. The stock warrants have a determinable value. 5. Smith declared and issued a 2% stock dividend. Bond Bond Bonds discount premium payable 111