On January 1, Sewell Corporation issues $2,000,000, 5- year, 12% bonds at 96 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a a.debit to Interest Expense, $120,000. b.debit to Interest Expense, $240,000. C.credit to Discount on Bonds Payable, s16,000. credit to Discount on Bonds Payable, $8,000. Accounting for Treasury Stocks Review Question A corporation purchases 20,000 shares of its own $10 par common stock for $25 per share, recording it at cost. Increase by $200,000 b. Decrease by $500,000 c. Increase by $500,000 d. Decrease by $200,000 11-35