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value: 1.00 polnts Grocery Corporation received $325,078 for 9.50 percent bonds issued on January 1,...

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Accounting

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value: 1.00 polnts Grocery Corporation received $325,078 for 9.50 percent bonds issued on January 1, 2015, at a market interest rate of 6.50 percent. The bonds had a total face value of $272,000, 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 Balance Sheet (B/S) or Income Statement (1/S): (b) the dollar amount by which the account increases, decreases, or does not change (0) when Grocery Corporation issued the bonds; and (c) the direction of change in the account lincrease, decrease, or no change] when Grocery Corporation records the interest payment on December 31 (a) Financial Statement (b) Issuance (c) Interest Paid Account 272,000 No Change No Change B/S Discount on Bonds Payable B/S 1/S Bonds Payable Increase Interest Expense Decrease Premium on Bonds Payable B/S

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