Question

Grouper Corporation sold $2,510,000, 8%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Grouper Corporation uses the straight-line method to amortize bond premium or discount.

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 103. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1
Dec. 31

Prepare journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 99.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1
Dec. 31

(1) Show the balance sheet presentation for the bond issue at December 31, 2017, using the 103 selling price.

GROUPER CORPORATION Balance Sheet (Partial)                                                                       December 31, 2017For the Month Ended December 31, 2017For the Year Ended December 31, 2017
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
					$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
			$
AddLess:

(2) Show the balance sheet presentation for the bond issue at December 31, 2017, using the 99 selling price.

GROUPER CORPORATION Balance Sheet (Partial)                                                                       December 31, 2017For the Month Ended December 31, 2017For the Year Ended December 31, 2017
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
					$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
			$
AddLess:

Answer 1

Date	Accounts Title	Dr	Cr
1-Jan	Cash (2510000/100*103)	2585300
	Premium on Bonds payable		75300
	Bonds payable		2510000
	Premium on Bonds payable	75300
	No of years	5
	Per year amortization	15060
31-Dec	Interest expenses	185740
	Premium on Bonds payable	15060
	Interest payable (2510000*8%)		200800
if sold at 99
1-Jan	Cash (2510000/100*99)	2484900
	Discount on Bonds payable	25100
	Bonds payable		2510000
	Discount on Bonds payable	25100
	No of years	5
	Per year amortization	5020
31-Dec	Interest expenses	205820
	Discount on Bonds payable		5020
	Interest payable (2510000*8%)		200800
1)
	GROUPER CORPORATION
	Balance Sheet (Partial)
	For the Year Ended December 31, 2017
	Current Liabilties
	Interest payable		200800
	Long term liabilties	2510000
	AddLPremium on Bonds payable	60240	2570240
	GROUPER CORPORATION
	Balance Sheet (Partial)
	For the Year Ended December 31, 2017
	Current Liabilties
	Interest payable		200800
	Long term liabilties	2510000
	Less: Discount on Bonds payable	20080	2489920