If $475,000 of bonds payable are issued at 101, $479,000 in cash would be received. True False Question 15 (3 points) If the market rate of interest exceeds the stated rate of interest on a bond investment, the bond would likely involve a premium. True False Question 16 (3 points) The bond stated interest rate is less than the market rate if bonds are issued at a discount. True False Question 17 (4 points) The bond interest rate for bonds: is greater than the market rate when bonds are issued at a premium. has no relation to the cash flow associated with a particular bond. will fluctuate over the life of a bond. must equal the effective interest rate. Question 18 (3 points) Each payment on a mortgage note payable consists of interest on the unpaid balance of the loan and reduction of loan principal. True False Question 19 (3 points) A prior period adjustment should be reported as an adjustment to the retained earnings balance at the beginning of the period in which the adjustment was made. True False Question 20 (4 points) All are reported in a retained earnings statement except Cash and stock dividends net income and net loss Sales of treasury stock above cost Some disposals of treasury stocks below. cost