Indicate whether Paid-in Capital in Excess of Par is a debit or credit account and whether it is closed or not closed each period.

Select one:

a. Debit, closed

b. Debit, not closed

c. Credit, closed

d. Credit, not closed

The coupon (stated) rate of interest is used to determine:

Select one:

a. The discount or premium recorded when the bond is issued.

b. The amount of cash interest the bond issuer pays to the investor on the interest payment dates.

c. The amount of principal due at the maturity date of the bond.

d. The rate investors demand for loaning funds to the corporation.

Which accounts are debit accounts?

Select one:

a. Premium on Bonds Payable, but not Discount on Bonds Payable

b. Discount on Bonds Payable, but not Premium on Bonds Payable

c. Both Discount and Premium on Bonds Payable

d. Neither Discount nor Premium on Bonds Payable