d. only after the stated interest rate is increased. semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2014 is a. Cash.. 8. On January 1, 2014, Meeks Corporation issued S5,000,000 10-year, 4% bonds at 102 Interest is payable 5,000,000 5,000,000 Bonds Payablc. 5,100,000 b Cash. 3,100,000 Bonds Payable... 100,000 c. Premium on Bonds Payable Cash 5,100,000 Bonds Payable 5,100,000 d. Cash. 5,000,000 100,000 Bonds Payable.... Premium on Bonds Payable bond was retired at 98 when the carrying value of the boed was $590,000. The entry to record the 9. A S600,000 retirement would include a a. gain on bond redemption of $10,000 b. loss on bond redemption of $10,000. c. loss on bond redemption of $2,000 d. gain on bond redemption of $2,000. 50, 5% way lan Company bonds for S50,000 cash plus brokerage fes of S500. Interest is 10. Ban Co. purchased payable semiannually on July 1 and January I. The entry to record the December 31 interest accrual would include a. debit to Interest Receivable for $1,250. b. debit to Interest Revenue for $1,250 c. credit to Interest Revenue for $1,262.50 d. debit to Debt Investments for $1,262.50. 11. Tempest Co. purchased 60, 6% Urich Company bonds for S60000 cash. Interest is payable semiannually on July and January 1. If 30 of the securities are sold on July 1 for $32,000, the entry would include a credin to Gain on Sale of Debt Investments for a. $1.600. b. $1,750 c. $1,800. d. $2,000. 12. On January 1, Hamim Company purchased as an investment a SL000, 6% bond for S 1,020. Te bond pays interest on January 1 and July I. What is the entry to record the interest accrual on December 31 a Interest Receivable b. Debt Investments 30 30 60 60 30 Interest Revenue Interest Revenue Interest Revenue Interest Revenue 30 60 60 c Interest Receivable d. Debt Investments 13. Beak Corporation sells 200 shares of common stock being held as an investment. The shares were acquired sis months ago at a cost of $25 a share. Beak sold the shares for $40 a share. The entry to record the sale is a. Cash.. 5,000 3,000 Loss on Sale of Stock Investments Stock Investments 8,000