Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2018, at a market interest rate of 8 percent. Th

Question

3 years ago

10

Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2018, at a market interest rate of 8 percent. Th

e bonds had a total face value of $250,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Required: Prepare the following table for each account by indicating (a) whether it is reported on the Balance Sheet (B/S) or Income Statement (I/S); (b) the dollar amount by which the account increases, decreases, or does not change when Grocery Corporation issues the bonds; and (c) the direction of change in the account [increase, decrease, or no change] when Grocery Corporation records the interest payment on December 31.

Business

1 answer:

AnnZ [28] · Answer 1 · 2022-02-16T14:31:20+03:00

AnnZ [28]3 years ago

5 0

Answer:

For A. and B see attached files

Explanation: