【正文】 ct rate of interest.D. Both A and C are true.56． Sister Company issued bonds payable at a discount and uses the effectiveinterest method of amortization. Which of these statements correctly describes Sister’s financial statements?A． The carrying amount of the bonds on the balance sheet will decrease each interest period.B． The interest expense each interest period will be greater than the cash paid for interest.C． The interest paid will be a constant percentage of the carrying amount.D． The Discount on Bonds Payable will be added to the liabilities on Sister’s financial statements.57． Greta Corporation has outstanding $600,000 of 5year,8% bonds payable with a carrying value of $604,000. The bonds are retired at , 2 years ahead of their scheduled maturity date. The journal entry to record the retirement will include all of the following except aA． debit to Extraordinary Loss on Retirement of Bonds Payable, $5,000.B． Credit to Cash, $609,000.C． Debit to Bonds Payable, $604,000.D． Debit to Premium on bonds Payable, $4,000.58． When a pany reports liabilities on its financial statements:A． the fair market value of longterm debt appears as a part of longterm liabilities on the balance sheet.B． Borrowing and repayment of longterm debt appears as a part of investing activities of the statement of cash flows.C． Deferred credits and deferred ine taxes may appear as a part of longterm liabilities on the balance sheet.D． Both operating leases and capital leases are a part of the liabilities section on the balance sheet, and may be either long or short term.Table 4On December 31,20X8, the Orthon Co. reported the following in its parative financial statement:12/31/20X812/31/20X710%cumulative preferred stock, $50 par and redemption value, 2,000 shares authorized and ? shares issued$50,000$50,000Paidin capital in excess of parpreferred4,0004,00054,00054,000Common stock, $2 par, 20,000 shares authorized and 4,000(20X4) and 3,000(20x3) share issued and outstanding8,0006,000Paidin capital in excess of parmon84,00080,00092,00086,000Total paidin capital146,000140,000Retained earnings140,000110,000Total stockholders’ equity$286,000$250,00059． The number of preferred shares issued and outstanding at the end of 20X8 is :,000 B. 2,000 ,000 D. 50060． Refer to table 4. Assume Orthon had not paid any dividends in 20X520X7. In 20X8, Orthon declared cash dividends of $48,000 to both the preferred and mon stockholders. The total dividend received by the mon stockholders was (assuming the number of preferred shares did not change): A. $48,000 B. $28,000 C.$38,000 D. $43,00061． Refer to Table 4. Assume net ine for 20X8 is $66,000, and there are no dividends in arrears. What is Orthon’s return on mon stockholders’ equity for 20X8? % B. % % D. %62． Refer to Table 4. Assume that there are no dividends in arrears. What is Orthon’s book value per share of mon stock at the end of 20X8?A. $53 B. $ C. $58 D. $63． Which of the following transactions increases stockholders’ equity?A. A twoforone stock splitB. Issuance of stock at a price above par valueC. A 20% stock dividendD. Purchase of treasury stock above par64． The journal entry to record the distribution of a large stock dividend would include all of the following except:A. Retained Earnings, debitB. Common Stock, creditC. Paidin Capital in Excess of Par, creditD. All of the above are included in the entry65． Which one of the following statements is true?A. A large stock dividend increases the number of shares issued, but a stock split does not.B. A stock split reduces the market price of the stock, but a large stock dividend does not.C. A stock split does not decrease the par value of the stock, but a large stock dividend does not.D. Both stock splits and stock dividends have no effect on total stockholders’ equity.66． Olson Inc. purchased 5,000 shares of its own $1 par value mon stock for $16 per share. Later, Olson sold 200 shares of the treasury stock for $20 per share. The entry to record the sale of the treasury stock is:A. Cash 4,000Treasury Stock 4,000 B. Cash 4,000 Treasury Stock 200 Paidin Capital from Treasury Stock Transactions 3,800 C. Cash 4,000 Treasury Stock 3,200 Paidin Capital from Treasury Stock Transactions 800 D. Cash 4,000 Common Stock 200 Gain on Sale of Stock 3,80067． Which of the following transactions would not be found on the statement of cash flows?A． Declaration of a cash dividendB． Purchase of treasury stock above parC． Issuance of preferred stock at a price above parD． Sale of treasury stock at a price below the cost12 /