Grocery Corporation received $315,982 for 10.00 percent bonds issued on January 1, 2021, 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.

Required:

Prepare 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 when Grocery Corporation issues 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.