1. Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2017, Sparta Company issued $550,000 of 5-year, 12% bonds, yielding a market (yield) rate of 10%. Interest is payable semiannually on June 30 and December 31
Confirm the bond issue price.
Indicate the financial statement effect for:
Bond issuance,
Semiannual interest payments
2. Which one of the following is a direct result of a 2-for-1 stock split?
A. A 100 percent increase in the common stock account balance (common stock line).
B. A 100 percent increase in the number of shareholders.
C. A 50 percent decrease in the par value per share.
D. A 50 percent increase in the number of shares outstanding.