7. Hayden Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 92. The journal entry to record the issuance will show a a. credit to Discount on Bonds Payable for $160,000 b. debit to Cash for $2,000,000 c. credit to Bonds Payable for $2,000,000 d. credit to Cash for $1,840,000 8. An installment note payable for a principal amount of $94,000 at 6 % interest requires Lawson Company to repay the principal and interest in equal annual payments of $22,315 beginning December 31, of the first year, for each of the next five years. After the final payment, the carrying amount on the note will be a. $1,263 b. $21,053 c. $22,315 d. $0 9. Glenn Corporation issues 1,000, 10-year, 8 % , $2,000 bonds dated January 1 at 96. The journal entry to record the issuance will show a a. debit to Discount on Bonds Payable for $80,000 b. debit to Cash for $2,000,000 c. credit to Bonds Payable for $1,920,000 d. credit to Cash for $1,920,000 10. One potential advantage of financing corporations through the use of bonds rather than common stock is a. the interest on bonds must be paid when due b. the corporation must pay the bonds at maturity c. the interest expense is deductible for tax purposes by the corporation d. a higher earnings per share is guaranteed for existing common shareholders 11. On January 1, Zero Company obtained a $52,000, four-year, 6.5 % installment note from Regional Bank. The note requires annual payments consisting of principal and interest of $15,179, beginning on December 31 of the current year. The December 31, Year 1, carrying amount in the amortization table for this installment note will be equal to a. $27,635 b. $40,201 c. $36,821 d. $48,620