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2. On January 1, 2020, Clearwater Corporation sold bonds with a face value of $750,000 and coupon rate of 8%. The bonds mature in
2. On January 1, 2020, Clearwater Corporation sold bonds with a face value of $750,000 and coupon rate of 8%. The bonds mature in 10 years and pay interest annually every December 31. Clearwater uses the straight-line amortization method and does not use a discount account. Assume an annual market rate of interest of 9%. Required: 1. Prepare a Bond Amortization Schedule for Clearwater Corporation. 2. Provide a journal entry to record the issuance of the bonds. 3. Provide the journal entry to record the interest payment on December 31, 2022 4. What bond payable amount with Clearwater report on its December 31, 2025, Balance Sheet? (20 POINTS)
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