Question 20 2pts A graphics design company issued bonds in the amount of $1,000,000 with a stated interest rate of 8%. If the interest is paid semiannually and the bonds are due in 10 years.what! would be the total amount of interest paid over the life of the bonds $1,000,000 $80,000 $400,000 $800,000 Question 21 A convertible bond is one where the issuer can convert the bond from long-term to short-term. the bondholder can convert the bond into common stock at a future time. the issuer can retire the bond before its specified maturity date. the issuer can convert from a fixed interest rate to a floating rate. Question 22 The Premium on Bonds Payable account is shown on the balance sheet as a reduction of an expense. an adjunct liability account that increases carrying value of the bonds. a subtraction from a long-term liability. a contra asset. Question 23 The current portion of long-term debt would appear on the balance sheet as contra-liability. long-term liability. current asset. current liability. ullions Question 24 When bonds are issued by a company, the accounting entry shows an increase in assets and an increase in liabilities. o increase in assets and an increase in stockholders' equity. o increase in liabilities and an increase in stockholders' equity. increase in liabilities and a decrease in stockholders' equity