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33. Assume the market rate of interest is at 13%. If Toys Inc. is offering a $20,000 12% 10-year bond that pays interest annually, this bond would most likely sell at an amount: A) equal to the face value of the bond. B) greater than the face value of the bond (i.e. at a premium). C) less than the face value of the bond (i.e. at a discount) D) Not enough information to draw a conclusion. 34. Football Enterprises issues 1,000 20-year, 6%, $1,000 bonds to fund their new sports stadium on January 1, 2019 at 105. The bond premium recorded for this transaction would be a: A) SO, there is no bond premium on this transaction. B) $60.000 debit to Premium on Bonds Payable C) $60,000 credit to Premium on Bonds Payable D) $50,000 credit to Premium on Bonds Payable 35. Triple C Corporation issues 600 10-year, 8%, $1,000 bonds dated January 1, 2019 at 96. The bond discount recorded for this transaction would be a: A) SO, there is no bond discount on this transaction. B) $24,000 debit to Discount on Bonds Payable C) $24,000 credit to Discount on Bonds Payable D) $48,000 debit to Discount on Bonds Payable 36. Bonds that the issuing company can retire at a stated dollar amount prior to maturity (early) are considered: A) Convertible Bonds B) Unsecured Bonds C) Callable Bonds D) Secured Bonds 37. AJ Corporation issues 500 5-year, 5%, $2,000 bonds dated January 1, 2019 at 104. The journal entry to record the issuance would include: A) A credit to Bonds Payable for $1,000,000 B) A debit to Cash for $1,040,000 C) A credit to Premium On Bonds Payable $40,000 D) A and B Only E) All of the Above [10]

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