Refer to the information in E10 9 and assume Grocery Corporation uses the straight line method to amortize the bond premium E10 9 Grocery Corporation received $300,328 for $250,000, 11 percent bonds issued on January 1, 2012, at a market interest rate of 8 percent The bonds stated that interest wou...

Req 1 January 1 2012 dr Cash A 300328 cr Bonds Payable ...

Refer to the information in E10-9 and assume Grocery Corporation uses the straight-line method to amortize the

Question:

Refer to the information in E10-9 and assume Grocery uses the straight-line method to amortize the bond premium.
E10-9
Grocery received $300,328 for $250,000, 11 percent bonds issued on January 1, 2012, at a market interest rate of 8 percent. The bonds stated that interest would be paid each December 31 and that they mature on December 31, 2021.
Required:
1. Prepare the journal entry to record the bond issuance.
2. Prepare the journal entry to record the interest payment on December 31, 2012
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...