Question: 27. In eac h succeeding payment on an installment note: A) The amounts paid for both interest and principal increase proportionately B) The amount of

27. In eac h succeeding payment on an installment note: A) The amounts paid for both interest and principal increase proportionately B) The amount of principal paid decreases. C) The amount of principal paid increases. D) The amount of interest paid increases. 28. Ri ck's Pawn Shop issued 1 1% bonds, dated January 1, with a face amount of$400,000 on January 1, 2019 The bonds sold for $370 ,000 For bonds of similar risk and maturity the market yield was 12% Interest is paid Semiannually on June 30 and December 31. Rick's determines interest at the effective rate and elected the option to report these bonds at their fair value. On December 31,2019, the fair value of the bonds was $365,000, with $2,000 of the change due to a change in general interest rates. Rick's statement of comprehensive income will include: A) An unrealized loss from change in the fair value of debt of $3,412. B) An unrealized gain from change in the fair value of debt of $3,412. C) An unrealized gain from change in the fair value of debt of $5,412 D) An unrealized gain from change in the fair value of debt of $2,000. 29. On March 1, 2018, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 103, due on February 28. 2028. Each S1,000 bond was issued with 30 detachable stock warrants, each of which entitled the holder to purchase, for $50, one share of Evan's $25 par common stock. On March 1, 2018, the market price of each warrant was $4. By what amount should the bond issue proceeds increase shareholders' equity? $30,000. B) S0. C) $90,000. D) $120,000. 30. On March 31, 2018, Ashley, Inc.'s bondholders exchanged their convertible bonds for common stock. The book value of these bonds on Ashley's books was less than the fair value but greater than the par common stock issued. If Ashley used the book value method of accounting for the conversion, which of following statements correctly states an effect of this conversion? A) Retained carnings is increased. B) Shareholders' equity is inereased. value of the he C) Additional paid-in capital is decreased D) A loss is recognized

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