35. Dividends are declared from

Select one:

a. Capital Stock.

b. Paid-in Capital in Excess of Par.

c. Retained Earnings.

d. Treasury Stock.

36. On January 1, Pacer Corporation issued $2,000,000, 13%, 5-year bonds with interest payable on July 1 and January 1. The bonds sold for $2,197,080. The market rate of interest for these bonds was 11%. On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for

Select one:

a. $260,000.

b. $120,839.

c. $241,679.

d. $130,000.

e. $142,810.

37. Investors who receive checks in their names for interest paid on bonds must hold

Select one:

a. coupon bonds.

b. bearer bonds.

c. registered bonds.

d. direct bonds.