Questions 1-8 For questions 18 use the following Information Comox Cakes wants to issue bonds so it can expand its business. They are considering issuing $500,000 of 6%, 20-year bonds dated June 1.2020 with interest payment dates of December 1 and June 1. The cake company's year-end is December 31 1) The entry to record the issuance of the bond at par plus accrued interest on August 1, 2020 will include a credit to interest payable of what amount? $30,000 $5,000 O $15,000 O $2,500 QUESTION 2 The entry to record the issuance of the boods on June 1, 2020 at 96.5 includes a credit to Bouds Payable of what amount? 5482,500 OSS00,000 $530,000 O $17.500 QUESTION 3 The entry to record the issuance of the bonds on June 1, 2020, at 96.5 includes a debit to Cash of what amount? O $30,000 O $500,000 $482,500 O $530,000 QUESTION 4 Assuming the bonds are issued at 98 plus accrued interest on July 1, 2020, the semiannual cash payment for interest on December 1, 2020, will be in what amount? O $2,500 55,000 $12.500 O $15,000 QUESTION 5 Assuming the bonds are issued at 98 plus accrued interest on July 1, 2020, the cash obtained on the sale will be in what amount? O $500,000 $512,500 $492,500 QUESTIONS Assuming the bonds are issued at 98 plus accrued interest on July 1, 2020, the cash obtained on the sale will be in what amount? O $500,000 O $512,500 O $492,500 $502,500 QUESTION 6 What is the journal entry, assuming the bonds are issued at 98 on June 1, 2020 O Cash 500,000 Bonds payable 500,000 Cash 490,000 Bonds payable 490,000 O Cash 480,000 Discount on bonds payable 20,000 Bonds payable 500.000 O Cash 490,000 Discount on bonds payable 10,000 Bonds payable 500,000 QUESTION 7 What is the joumal entry, assuming the bonds are issued at 102 on June 1, 2020. O Cash 510,000 Premium on bonds payable 10,000 Bonds payable 500,000 O Cash 530,000 Premium on bonds payable 30,000 Bonds payable 500,000 O Cash 490,000 Bonds payable 490,000 O Cash 500,000 Bonds payable 500,000 QUESTION 8 What is the journal entry, assuming the bonds are issued at 98 on July 1, 2020. O Cash 500,000 Bonds payable 500,000 O Cash 492,500 Interest Expense 7,500 Bonds Payable 500,000 O Cash 490,000 Discount on bonds payable 10,000 Bonds payable 500,000 O Cash 492,500 Discount on bonds payable 10,000 Interest Payable 2,500 Bonds payable 500,000 QUESTIONS Assume the following shares outstanding: (1) Preferred shares, S3, cumulative, 1,000 shares with dividends in arrears 3 years, for 2017, 2018, and 2019. (2) Common shares, 2,000 shares. Total dividends declared in 2020 were $30,000. What is the total amount of dividends to which common shareholders are entitled? $30,000 $18,000 $27,000 O $21,000 QUESTION 10 Saratoga Corporation declared a cash dividend on December 30, 2019, payable on January 10, 2020. A journal entry for the dividend was not made in December 2019. What were the effects on the 2019 financial statements? tatod