E10-11 (Supplement 10A) Recording the Effects of a Premium Bond Issue and First Interest Period...
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E10-11 (Supplement 10A) Recording the Effects of a Premium Bond Issue and First Interest Period (Straight-Line Amortization) [LO 10-S1] Grocery Corporation received $321,983 for 10.50 percent bonds issued on January 1, 2018, at a market interest rate of 7.50 percent. The bonds had a total face value of $267.000, 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. Required: 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.) View transaction list X > Record the issuance of bonds for $321,983 with a face value of $267,000. 000. 2 Record the interest payment on December 31. Credit Note: = journal entry has been entered Record entry Clear entry View general journal
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