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 straight-line method to amortize the bond premium.

Prepare the required journal entries to record the bond issuance and the first interest payment on December 31.

Record the issuance of bonds for $316,530 with a face value of $257,000.

Record the interest payment on December 31.