Question
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
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 would be paid each December 31 and that they mature on December 31, 2021. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. |
Required: |
1. & 2. | Complete the required journal entries to record the bond issuance and the interest payment on December 31, 2012. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) |
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