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bl y date. 34) Sinking funds usually appear on the balance sheet as: A) Long-term investment. C) Current asset. B) Appropriation of retained earnings. D) Current liability. 35) Bonds which may be exchanged for a specified number of shares of capital stock are calle d: A) Debenture bonds. C) Convertible bonds. B) Junk bonds. D) Mortgage bonds. 36) When a corporation has a right to redeem bonds in advance of the maturity date, the bond is considered a: A) Convertible bond C) Debenture bond. B) Callable bond. D) Junk bond. Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated December 31, Year 1 . The bonds are issued on April 30, Year 2, at 100 plus accrued interest. Interest on the bonds is payable semiannually each June 30 and December 31. 37) Refer to the information above. The total amount of cash received by Austin Corporation upon issuance of the bonds on April 30, Year 2, is: B) S6,300,000. A) $6,200,000. C) $6,150,000. D) $6,000,000. 38) Refer to the information above. The amount of Austin's interest expense on this bond issue during Year 2 amounts to: A) $450,000. B) $600,000. C) $400,000. D) $360,000 A-6