Horton Company retires its bonds payable early at a price of 101. The bonds have a face value of $20,000,000. On the date the bonds are retired, they have unamortized 'Discount on Bonds Payable' of $540,000. What journal entry will the company make to record the bond retirement?

Question 26 options:

	Dr. Bonds Payable 20,000,000 Dr. Discount on Bonds Payable 540,000 Cr. Loss on Retirement of Bonds 340,000 Cr. Cash 20,200,000
	Dr. Bonds Payable 20,000,000 Dr. Loss on Retirement of Bonds 740,000 Cr. Discount on Bonds Payable 540,000 Cr. Cash 20,200,000
	Dr. Bonds Payable 20,000,000 Dr. Premium on Bonds Payable 540,000 Cr. Gain on Retirement of Bonds 340,000 Cr. Cash 20,200,000
	Dr. Bonds Payable 20,200,000 Dr. Loss on Retirement of Bonds 340,000 Cr. Discount on Bonds Payable 540,000 Cr. Cash 20,000,000

2)

Tower Company announces a 2:1 stock split. Prior to the stock split, Tower had 500,000 shares of common stock outstanding and the par value was $0.10 per share. After the stock split, Tower would have:

Question 39 options:

	1,000,000 outstanding shares with a par value of $0.10 per share
	250,000 outstanding shares with a par value of $0.20 per share
	1,000,000 outstanding shares with a par value of $0.20 per share
	1,000,000 outstanding shares with a par value of $0.05 per share

3)

Tower Company announces a 100% stock dividend. Prior to the stock dividend, Tower had 500,000 shares of common stock outstanding and the par value was $0.10 per share. After the stock dividend, Tower would have:

Question 40 options:

	1,000,000 shares outstanding with a par value of $0.20 per share.
	2,000,000 shares outstanding with a par value of $0.10 per share.
	1,000,000 shares outstanding with a par value of $0.05 per share.
	1,000,000 shares outstanding with a par value of $0.10 per share.

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