Partha Company, operates in the Service Industry. They issued $500,000 bond which gave them cash proceeds of $490,000. Therefore, the bonds: Multiple Choice Sold at a discount because the stated interest rate was higher than the market rate. Sold for the $500,000 face amount less $10,000 of accrued interest. Sold at a premium because the stated interest rate was higher than the market rate. Sold at a discount because the market interest rate was higher than the stated rate. Lakeside Condos, which rents vacation condos, issues a bond with a stated interest rate of 10%, face value of $50,000. The bond is due in 5 years and interest payments are paid semi-annually. At the time of the issuance the market rate for this type of bond is 8%. What is the issue price of the bond (rounded to nearest whole dollar)? (Use Table 2 and Table 4, contained within a separate file.) Multiple Choice $83,920. 0 $46,320. 0 $54,055. 0 $50,000. While doing research on an accounting project, Tony found several companies that had issued bonds in the past year. Below is information that was gathered. Which bond(s) will be issued at a premium? Bond 1 Bond 2 Bond 3 Bond 4 Stated Rate of Return 7% 12% 10% 8% Market Rate of Return 8% 10% 10% 9% Multiple Choice Bond 1. Bond 2 Bond 3. Bonds 2 and 4. ABC Corp has issued bonds in the past year. Bondholders receive semi-annual interest payments. ABC records interest expense when it records the interest payment. The debit to on the bonds is calculated as the: Multiple Choice Face amount times the stated interest rate times the time period. o Face amount times the market interest rate time the time period. o Carrying value times the market interest rate times the time period. o Carrying value times the stated interest rate times the time period. Zack's House Builders issues bonds to raise capital. The last $100,000 of bonds were issued at a discount. How is the interest payment, interest expense and carrying value shown on the bond amortization schedule? Multiple Choice 0 Carrying value and interest expense increase. 0 Carrying value and interest expense decrease. 0 Carrying value decreases and interest expense increases. 0 Carrying value increases and interest expense decreases