Table 6 is the stockholders' equity section of the balance sheet of RedCorporation: Paid-in capital: Preferred stock, 5%, cumulative $50 par, 35,000 shares authorized, 7,000 shares issued 350,000 Common stock, $5 par, 140,000 shares authorized, 50,000 shares issued 250,000 Paid-in capital in excess of par-common Total paid-in capital 202,500 S 802,500 Retained eanings Total stockholders' equity 12) Refer to Table 6. The entry to record Red's purchase of 10,000 shares of its common stock at 75 per 12) share includes a: A) debit to retained earnings for $750,000 B) credit to common stock for $50,000 C) debit to treasury stock for $750,000 D) credit to paid-in capital from treasury stock transaction for $700,000 13) On January 2, 20X5, Lot Corporation issues $200,000 face value, 6% bonds for S196000. It may be 13) derived that the effective rate of interest was: A)less than 6% B) equal to 6% C)more than 6% D) impossible to determine from the given data 14) jones Corporation issues S400000, 10%, 5year bonds at 103. The total interest expense over the life 14) of the bonds is: A) $188,000 B) $40,000 C) $200,000 D) $212,000 Table 1 William Industries needs to raise capital for expansion purposes. Management is considering issuing si,00,000 of 75%. 20-year bonds dated June 1, 20X6, with interest payment dates of December 1 and June 1. William's year-end is December 31. 15) 15) Refer to Table 1. The entry to record the issuance of the bonds on June 1, 20x6, at 96 1/2 includes a A) credit to cash for $37,500 B) credit to interest payable for $75,000 C) credit to bonds payable for $965,000 D) debit to discount on bonds payable for $35,000