Question

the price the market rate of interest is C are R h of previously uncommon stock, paying pershare on April 15 Which of the following 50,000 35,000 O S Ameo in the hip of the stock and stockholders e officers to manage the business The issue was priced 0945. What is the D 15 standing the caption to The n 56400 . them the plates) The JOURNAL ENTRIES 1 Credit $1600 S40D Jan 1 Depreciation Expense - truck Accumulated Depreciation - truck

Answer 1

Answer-12:

Since the bonds interest rate is more than market interest rate, the bonds is considered as at premium

Hence, Option A is the correct answer.

Answer-13:

The corporation cannot report this "gain" on its income statement. Instead the $10,000 (i.e (1,000*35)-(1,000*$25)) goes directly to stockholders' equity in the paid-in capital section.

Hence, Option C is the correct answer.

Answer-14:

Option A is the correct answer.

Answer-15:

Cash received = $500,000 * 99.45/100 = $497,250

Hence, Option B is the correct answer.

Answer-16:

Option B is the correct answer.