Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2015, at a market interest rate of 8 percent. The bonds had a total face value of $250,000, stated that interestwould be paid each December 31, and stated that they mature in 10 years.Required:Complete 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( 1 ), decreases ( 2 ), or does not change (0) when Grocery Corporation issued the bonds; and( c ) the direction of change in the account [increase ( 1 ), decrease ( 2 ), or no change (0)] whenGrocery Corporation records the interest payment on December 31
Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2015, at a market interest rate of 8 percent. The 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:
Complete the following table for each account by indicating ( a ) whether it is reported on the
( 1 ), decreases ( 2 ), or does not change (0) when Grocery Corporation issued the bonds; and
( c ) the direction of change in the account [increase ( 1 ), decrease ( 2 ), or no change (0)] when
Grocery Corporation records the interest payment on December 31
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