Student Name: North St Trial Bala Debit File: Acct 312 test 1-Fall 2022 Chapter 14 If bonds are issued initially at a premium and the effective-interest method of amortization expense in the earlier years will be greater than if the straight-line method were used. b. greater than the amount of the interest payments S 1150,00 $ 2,575, 4,200,0 d. 2. a 7,500,0 950,0 ,000,000 500,000 50,000 $ $ $ $ 1,5 the same as if the straight-line method were used. less than if the straight-line method were used. The rate of interest "actually" earned by bondholders is called the stated rate. b. coupon rate c nominal rate. effective rate On June 30, 2020, company issued $6,000,000 face value 10% 20 year bonds at $7,187,566 a yield of The company uses the effective-interest method to amortize bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31 Required: Prepare the journal entries to record the following transactions. 1 The issuance of the bonds on June 30, 2020 2 The payment of interest and the amortization of the premium on December 31, 2020 $ 4,00 $ SOC June 302020 cash Debia 3.87.566 Croddia $ 6,500, Pressium on bonds 3387566 6.000.000 $ 3,900,1 Bonds Payable $ 18,550,00 12/31/2020 anatrist 359378 Premium onband 540,000 cash The residual interest in a corporation belongs to the a. management. b. creditors. CHAPTER 15 250,000 1. 150,000 25,000 2. 13 C. common stockholders. d. preferred stockholders. Which of the following represents the total number of shares that a corporation may issue under its charter? a. Authorized shares b. Issued shares c. Unissued shares d. Outstanding shares