Question 10 Bond issue costs are reported on the financial statements as: O a decrease to revenue from the issuance of debt. an increase to the carrying value of the debt that is issued. a decrease to the carrying value of the debt that is issued. an increase to interest expense on the date the bonds are issued. Question 11 2.5 pts Hawk issued $200,000 of its ten-year, 10% bonds for $224,924 on October 1, 2019. The effective interest rate was 8% and interest is paid each October 1 and April 1. Assuming Hawk uses the effective interest method, the adjusting entry on December 31, 2019, would include (rounded to the nearest dollar): O a credit to Premium on Bonds Payable for $502. O a credit to Interest Payable for $4,498. O a credit to Interest Payable for $5,000. O a debit to Interest Expense for $5,498