Question
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,
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.
1. Smith issued bonds payable with a nominal rate of interest that was less than the market rate of interest.
Bond discount:
Bond premium:
Bonds payable:
2. Smith issued bonds convertible to common stock for an amount in excess of the bonds' face amount.
Bond discount:
Bond premium:
Bonds payable:
5. Smith declared and issued a 2% stock dividend.
Bond discount:
Bond premium:
Bonds payable:
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