Use the following to answer questions 13-14: Diamond Company borrowed $500,000 from Bank Two on January 1, 2016 in order to expand its mining capabilities. The five-year note required annual payments of $130,218 and carried an annual interest rate of 9.5% 13. What is the amount of expense Diamond must recognize on its 2016 income statement? A) $47.500 B) $39.642 C) $35,129. D) $31.037. Pg. 5 14. What is the balance in the notes payable account at December 31, 2016? A) $500,000 B) $326,706 C) $417.282 D) $405,000 15. On the date of issue, Chudzick Corporation sells $2 million of 5-year bonds at 97. The entry to record the sale will include the following debits and credit: Bonds Payable Discounts on Bonds Payable $1,940,000 CT SO Dr. $2,000,000C. $60,000 Dr. $2,000,000CT. $500,000Dr. $2,000,000C. $6,000Dr. 16. Hoffman Corporation retires its bonds at 106 on January 1", following the payment of semi-annual interest. The face value of the bonds is $400,000. The carrying value of the bonds at the redemption date is $419,800. The entry to record the redemption will include a A) credit of $19,800 to Loss on Bond Redemption, B) debit of $24,000 to Premium on Bonds Payable C) credit of $4,200 to Gain on Bond Redemption D) debit of $19,800 to Premium on Bonds Payable. Use the following to answer question 17: Cole Corporation issues 15,000 shares of $50 par value preferred stock for cash at $60 per share 17. The entry to record the transaction will consist of a debit to Cash for $900,000 and credit or credits to A) Preferred Stock for $900,000. B) Preferred Stock for $750,000 and Paid-in Capital in Hxcess of Par Value Preferred Stock for $150,000. Preferred Stock for $750,000 and Paid in Capital from Preferred stock for SI 50,000 D) Pald-in Capital from Preferred Stock for $900,000