Refer to the information in E10 9 and assume Grocery Corporation uses the effective interest 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 interes...

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

Refer to the information in E10-9 and assume Grocery Corporation uses the effective interest method to amortize

Question:

Refer to the information in E10-9 and assume Grocery uses the effective interest 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...