11. The journal 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. debit Cash, credit Premium on Bonds Payable and Bonds Payable d. debit Cash, credit Bonds Payable 12. XYZ Corp. is considering issuing bonds. Please choose the one statement below that is not an advantage of issuing bonds instead of common stock? a. tax savings result b. income to common shareholders may increase c. earnings per share on common stock may be lower d. stockholder control is not affected