Question

Grocery Corporation received $ 300,328 for 11 percent bonds issued on January 1, 2015, at a market interest rate of 8 percent. The bonds had a total face value of $ 250,000, stated that interest would be paid each December 31, and stated that they mature in 10 years.
Required:
Complete the following table for each account by indicating (a) whether it is reported on the Balance Sheet (B/ S) the Balance Sheet (B/S) or Income Statement (I/ S); (b) the dollar amount by which the account increases (+), decreases (–), or does not change (0) when Grocery Corporation issued the bonds; and (c) the direction of change in the account [ increase (+), decrease (–), or no change (0)] when Grocery Corporation records the interest payment on December 31.


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  • CreatedNovember 02, 2015
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