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Enviro Company issued 10-year, 7% bonds with a par value of $130,000. Interest is paid semiannually. The market rate on the issue date was 6%.
Enviro Company issued 10-year, 7% bonds with a par value of $130,000. Interest is paid semiannually. The market rate on the issue date was 6%. Enviro received $139,674 in cash proceeds. Which of the following statements is true? Multiple Choice Enviro must pay $130.000 at maturity plus 20 interest payments of $4.550 each. Enviro must pay $130.000 at maturity and no interest payments. Enviro must pay $139,674 at maturity plus 20 interest payments of $4.550 each. Enviro must pay $130,000 at maturity plus 20 interest payments of $3,900 each Enviro must pay $139,674 at maturity and no interest payments On July 9. Global Corporation had 61.000 shares of $5 par value common stock, and $183,000 of retained earnings. On that date, when the market price of the stock is $15 per share, Global issued a 3-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $915,000 credit Common Stock $915,000. Debit Retained Earnings $305,000; credit Common Stock $305,000. Debit Retained Earnings $915,000, credit Common Stock Split Distributable $915,000 No entry is made for this transaction. Debit Retained Earnings $305.000, credit Stock Split Payable $305,000
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