Grocery Corporation received $316,530 for 8.00 percent bonds issued on January 1, 2018, at a market interest rate of 5.00 percent. The bonds had a total face value of $257,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium.

Required:

1. 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31. (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.)

Answer is not complete. No Date General Journal Debit Credit 1 January 01 Cash 316,530 Premium on Bonds Payable 5,953 Interest Expense 20,560