Item2

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Item 2

Item 2 3 points

Grocery Corporation received $315,945 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $263,000, 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.)