tion 16 et ered RKO-Ortin Enterprises issued 1,000 bonds with a face value of $1,000 each at 98. In recording the journal entry for issuance of the bonds, which of the following is true? sout of tion Select one: O Premium on Bonds Payable is increased $20,000 O Premium on Bonds Payable is increased $12,000 O Cash is increased $1,000,000 O Discount on Bonds Payable is increased $20,000 O Discount on Bonds Payable is increased $12,000 O Bonds Payable is increased $980,000 Expenditures a company makes to maintain the operating efficiency and expected productive life of a long-term fixed asset are generally: Select one: expensed when incurred capitalized as a part of the cost of the asset O debited to the Accumulated Depreciation account O credited to the Accumulated Depreciation account O not recorded until they become material in amount 18 ABC Company reported net income for the year of $200,000. As well, ABC reported total assets of $2,000,000, total liabilities of $1,500,000 and total stockholders equity of $500,000 as of the end of the year. of After the financial statements were created, an examination of the accounting records found that ABC Company improperly recorded $20,000 of repair expenses as capitalizable costs (i.e., costs recorded as part of long-term fixed assets). When the financial statements are corrected for this error, which of the following will be true? Check all that will be true. Select one or more: Net income will remain at $200,000 Net income will be less than $200,000 Net income will be more than $200,000 Total assets will remain at $2,000,000 Total assets will be less than $2,000,000 Total assets will be more than $2,000,000