12) 12) Which of the following journal entries does not reflect the initial cash sale of shares of common stock? A) Cash Common stock (no par) B) Cash XXX XXX Common stock (stated value) Gain on sale of stock C) Cash XXX XXX Common stock (par value) Additional paid-in capital XXX D) Cash Common stock (stated value) 13) A company prepared the following journal entry: XXX Interest expense Premium on bonds payable Cash Which of the following statements incorrectly describes the effect of this journal entry on the financial statements? A) Stockholders' equity decreases by the amount of the debit to interest expense. B) Assets decrease by the amount of the credit to cash. C) The bonds payable book value decreases by the amount of the debit to premium on bonds payable. D) The cash payment is reported as a cash flow from financing activities. 14) 14) If a bond is issued at 98, the coupon rate was A) lower than the market rate of interest. B) not related to the market rate of interest. C) equal to the market rate of interest. D) higher than the market rate of interest