On January 1, InnoSolutions, Inc. issued $140,000 in bonds at face value. The bonds have a stated interest rate of 5 percent. The bonds mature in ten years and pay interest once per year on December 31. Required: 1. Prepare the journal entry to record the bond issuance. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet General Journal Credit No 1 Date December 31 Debit 140,000 Cash Bonds payable 140,000 2. Prepare the journal entry to record the interest payment on December 31. Assume no interest was accrued earlier in the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Credit Debit 7.000 December 31 Interest expense Cash 7.000 3. Assume the bonds were retired immediately after the first interest payment at a quoted price of 103. Prepare the journal entry to record the early retirement of the bonds. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet Credit Date December 31 General Journal Bonds payable Loss on bond retirement Cash Debit 133.000 7.000 140,000 Which of the following is a standard of recognition of contingent liabilities required by IFRS: Multiple Choice O does not require that it be measurable. recognize the liability if the occurrence of the future event is likely meaning it is highly probable. O recognize the liability if the occurrence of the future event is more likely than not meaning its probable and it is also measurable. C ) Recognize the liability if the occurrence of the future event is certain The combined effect of the declaration and payment of a cash dividend on a company's financial statements is to: Multiple Choice 0 decrease total assets and decrease shareholders' equity. O increase total assets and increase shareholders' equity. O O increase total expenses and increase total liabilities. decrease total liabilities and decrease shareholders' equity