FO 12. The interest rate investors demand for loaning funds is the a market interest rate b. stated rate C contractual interest rate d bond interest rate 13. Each of the following accounts is reported as long-term liabilities except (a) Interest Payable. b. Bonds Payable C Discount on Bonds Payable d. Premium on Bonds Payable. Fourthousand bonds with a face value of $1.000 each, are sold at 105. The entry to record the issuance is a. Cash 4,200,000 4,200,000 Bonds Payable ....... 4,000,000 b Cash ...... 200,000 Premium on Bonds Payable 4,200,000 Bonds Payable .... 4,200,000 C Cash 200,000 Premium on Bonds Payable ..... 4,000,000 Bonds Payable... 4,200,000 Cash... 200,000 Discount on Bonds Payable .... 4,000,000 Bonds Payable...... 15. Martinez Corporation issues 2.000, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 98 The journal entry to record the issuance will show a a. debit to Cash of $2,000,000 b. credit to Discount on Bonds Payable for $40,000 c credit to Bonds Payable for $2,040,000. d. debit to Cash for $1,960,000 16. The order of presentation of activities on the statement of cash flows is a operating, investing, and financing b. operating, financing, and investing c. financing, operating, and investing d. financing, investing, and operating