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Business, 17.04.2021 20:30 aud50

Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2018, 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. Assume Grocery Corporation uses the straight-line method to amortize the bond premium. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31.

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