E10-2 Determining Financial Statement Effects for Long-Term Note and First Interest Payment, with Discount LO10-1, 10-3, 10-7 Grocery Corporation sold $580,000, 8 percent notes on January 1 of this year at a market rate of 9 percent. The notes were dated also on January 1 with interest to be paid each December 31; they mature in 10 years. Use effective-Interest amortization and a discount account. Use effective interest amortization. Use Table 9C.1, Table 9C.2. Required: 1. This part of the question is not part of your Connect assignment. 2 This part of the question is not part of your Connect assignment. 3. Show how the Interest expense, Interest payment, and notes payable should be reported on the financial statements for this year. (Round time value factor to 4 declmal places. Round Intermediate and final answers to the nearest whole dollar.) GROCERY CORPORATION Financial Statements For year ended December 31 Statement of earnings: Interest paid Discount on bonds payable Statement of financial position: Long-term liabilities: Notes payable Less: Unamortized discount Statement of cash flows: Cash s 0 Cash