Date Class: Name 7. The Freeman Co oration issues 2,000, 10-year, 8%,$1,000 bonds dat d January 1 at 96. The or al entry to record the issuance will show a a. debit to Cash for $2,000,000 b. credit to Discount on Bonds Payable for $80,000 c. credit to Bonds Payable for $1,920,00 d. debit to Cash for $1,920,000 S. When the corporation issuing the bonds has the right to redeem the bonds prior to the maturity, the bonds are a. convertible bonds b. unsecured bonds c. debenture bonds callable bonds C. 9. The joumal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be a. debit Bonds Payable, credit Cash b. debit Cash and Discount on Bonds Payable, credit Bonds Payable C. lebit Cash, credit Premium on Bonds Payable and Bonds Payable debit Cash, credit Bonds Payable 10. When the maturities of a bond issue are spread over several dates, the bonds are called a serial bonds bearer bonds e. debenture bonds d. term bonds 11. e 11. Which ofthe following is not an advantage ofissuing bonds instead ofcommon stock? a. tax savings result b. income to common sharcholders may increase 2)earnings per share on common stock may be lower stockholder control is not affected 12. On Janu y 1,52 0 0000 5 year, 10% b nds, were issued for si 960 000. Interest is paid semiannually on January I and July I. If the issuing corporation uses the straight-line method payable, the semiannual amortization amount is a. $8,000 b. $2,000 c.$4,000 d. $10,000 to amortize the discount on bonds 60 ,000/5Rjopo - 12,000/26,000