Response to the following questions:
1. On May 1, a company sells 9% bonds with a $500,000 par value that pay semiannual interest on each January 1 and July 1. The bonds are sold at par plus interest accrued since January 1.
The issuer records the first semiannual interest payment on July 1 with
(a) a debit to Interest Payable for $15,000,
(b) a debit to Bond Interest Expense for $22,500, or
(c) a credit to Interest Payable for $7,500.
2. What is the main difference between a bond and a share of stock?