The entry to record the issuance of bonds at face value includes

A. a credit to Bond Interest Payable.

B. a credit to Bond Payable.

C. a debit to Bond Interest Expense.

D. a debit to Bond Interest Payable.

19. Which of the following is not a disadvantage of raising capital through the issue of bonds payable?

A. the bonds are classified as a long-term liability

B. interest must be paid even if the firm suffers a loss

C. the face amount must be repaid at maturity

D. interest is deductible for income tax purposes

22. The stockholders of a corporation

A. have no personal liability for the debts of the corporation.

B. are agents of the corporation empowered to act for the firm.

C. cannot sell their share of stock without obtaining the agreement of other stockholders.

D. will receive a dividend each year.

26. Total stockholders' equity would be decreased by

A. a stock split.

B. an appropriation of retained earnings.

C. a cash dividend.

D. a stock dividend