1. What are the advantages and disadvantages of the following:
2. Raising capital through the issuance of stock
3. Raising capital through the issuance of bonds
4. Corporate form of business versus sole proprietorship
5. Know the impact of stock splits on par value and market value. Be able to compute the new par value and market value given stock splits
6. What does bond discount do to interest expense over the life of the bond and why?

1. Complete the following chart:

Account	Type (asset, liability, equity, revenue, expense, or contra to any of the above)	Financial Statement and which section (Income statement or Balance sheet and which section)	Normal Balance (Debit or credit)
Common stock
Equipment
Accumulated Depreciation
Cost of Goods Sold
Paid in capital in excess of par value-common stock
Paid in capital in excess of par value-preferred stock
Bonds Payable
Premium on bonds payable
Discount on bonds payable

1. What does bond premium do to interest expense over the life of the bond and why?