Question 3 1 pts Under the effective interest method, the result of an effective interest rate that is higher than the stated (or coupon) rate on a bond payable is the: Cash interest paid on each interest date will be changed Carrying value of the bond payable will decrease each interest period Dollar amount of interest expense reported on the income statement will increase each interest period Bond Payable will sell at a premium Question 7 1 pts Share issue costs of $6,500 were incurred on the issue of 10,000 common shares at $10 each. The share issue costs are recorded: As an expense in the current year As a deferred asset As a credit to retained earnings As a debit to common shares Question 8 1 pts When an investor defaults on a payment for shares sold on a subscription basis, the corporation may decide to return all payments to the investor, issue shares equivalent to the number paid for in full or keep the money received with no shares issued. True False