Question

Stringer Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. The entry to record this transaction includes a: debit to Cash for $10,000 debit to Paid-in Capital in Excess of Par for $27,500 debit to Common Stock for $10,000 credit to Gain on Stock $37,500 None of these. On April 1, 20X6, Ratchford Industries issued $500,000 of 12%. 10 year bonds. The bonds which were issued at 103. pay interest on October 1 and April 1 The entry to record issuance of the bonds includes: a debit to Cash of $500,000. a credit to Bonds Payable of $50 3 000. a debit to Premium on Bonds Payable of 515 000. All of the above. None of these. When interest income on a bond investment is le than the cash received. the Investment in Bond account is credited. the bond was likely purchased at a premium. Interest Income is credited. All of these None of these.