Grove Corporation issued $500,000 of 8% bonds on January 1, 2010, due on January 1, 2015. The interest is to be paid twice a year on July 1 and January 1. The bonds were sold to yield 10% effective annual interest. Grove Corporation closes its books annually on December 31. Instructions (a) Complete the following amortization schedule for the dates indicated. Use the effective-interest method.

Statement showing amortization schedule
Date	Credit Cash	Debit Interest Expense	Credit Bond discount	Carrying Amount of Bonds
1/1/2010				461440
1/7/2010
1/1/2011

(b) Prepare the entry on date of issue 1/1/2010

(c) Prepare the journal entry on 1/7/2010

(d) Prepare the adjusting entry on December 31, 2010.