When callable bonds are redeemed below their carrying value 12. Gain on Redemption of Bonds is credited a. b. Loss on Redemption of Bonds is debited Discount on Bonds Payable is debited c. d. Premium on Bonds Payable is credited Unrealized Holding Gains and Losses-Equity is credited e. The journal entry a corporation records for the payment of interest, interest expense, 13. and the amortization of the bond discount is a, debit Interest Expense; credit Cash and Discount on Bonds Payable b. debit Interest Expense; credit Cash c. debit Interest Expense and Discount on Bonds Payable; credit Cash d. debit Interest Expense; credit Interest Payable and Discount on Bonds Payable e. debit Interest Payable; credit Cash and Discount on Bonds Payable The amortization of the discount on bonds purchased as a long-term investment 14. a. b. c. d. e. decreases the amount of interest expense increases the amount of the investment account decreases the amount of the investment account increases the amount of interest expense has no effect on the amounts of interest expense or the investment account Which of the following investments should be accounted for by employing the cost method? 15. a. temporary investments in stock (Trading) b. long-term investments in stock (Available for Sale) where the investor does not have a significant influence over the investee/affiliate long-term investments in stock (Available for Sale) where the investor does have significant influence over the investee/affiliate c. d. temporary investments in stock (Trading) and long-term investments in stock (Available for Sale) where the investor does not have significant influence over the investee/affiliate none of the above e