21. A bond sells at a discount when the: (a) Contract rate is above the market rate (b) Contract rate is equal to the market rate (c) Contract rate is below the market rate (d) Bond has a short-term life (e) Bond pays interest only once a year 22. Sinking fund bonds: (a) Require the issuer to set aside assets in order retire the bonds at maturity (b) Require equal payments of both principal and interest over the life of the bond issue (c) Decline in value over time (d) Are registered bonds (e) Are bearer bonds 23. Installment notes payable that require periodic payments of accrued interest plus equal amounts of principal result in: (a) Periodic total payments that gradually decrease in amount (b) Periodic total payments that are equal (c) Periodic total payments that gradually increase in amount (d) Increasing amounts of interest each period (e) Increasing amounts of principal each period 24. A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price for this bond is recorded as a: (a) Credit to (b) Interest Income (c) Credit to Premium on Bonds Payable (d) Credit to Discount on Bonds Payable (e) Debit to Premium on Bonds Payable 25. Operating leases differ from capital leases in that: (a) For a capital lease the lessee records the lease payments as rent expense, but for an operating lease the lessee reports the lease payments as depreciation expense (b) For an operating lease the lessee depreciates the asset acquired under lease, but for the capital lease the lessee does not (c) Operating leases create a long-term liability on the balance sheet, but capital leases do not (d) Operating leases do not transfer ownership of the asset under the lease, but capital leases often do (e) Operating lease payments are generally greater than capital lease payments I need these as soon as possible