Question
E10-9 Indicating the Effects of a Premium Bond Issue and Interest Payment on the Financial Statements [LO 10-3] Grocery Corporation received $312,703 for 10.00 percent
E10-9 Indicating the Effects of a Premium Bond Issue and Interest Payment on the Financial Statements [LO 10-3]
Grocery Corporation received $312,703 for 10.00 percent bonds issued on January 1, 2015, at a market interest rate of 7.00 percent. The bonds had a total face value of $261,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. |
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Complete the following table for each account by indicating (a) whether it is reported on 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] when Grocery Corporation records the interest payment on December 31. |
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