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 t...

Account a Financial Statement b Iss ...

Grocery Corporation received $ 300,328 for 11 percent bonds issued on January 1, 2015, at a market

Question:

Grocery 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 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 (B/ S) the (B/S) or Income Statement (I/ S); (b) the dollar amount by which the account increases (+), decreases (€“), or does not change (0) when Grocery issued the bonds; and (c) the direction of change in the account [ increase (+), decrease (€“), or no change (0)] when Grocery records the interest payment on December 31.

Grocery Corporation received $ 300,328 for 11 percent bonds issued

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