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Caire Corporation is plenning to issue bonds with a fece value of $2B0,000 and a coupan rate of B percent. The bonds meture in two
Caire Corporation is plenning to issue bonds with a fece value of $2B0,000 and a coupan rate of B percent. The bonds meture in two years and pay interest querterly every March Jenuery 1 of this year. Claire uses the efTective-interest amortization method and also uses a discount eccount Assume an ennuel market rete of interest of 12 percent (FV of S1, PM of $1, EVA of $1, and PVA or $1) (Use the appropriate factor(s) from the tebles provided.) , September 30, end December 31. All of the bonds were sold o June 3. Required information 10.00 points Duida he icurmal entry lo record e issuance of the bonds. ( no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Round your final ansswers to nearest whole dollar amount.) View transactlon list Journal entry worksheet the bonds on January 1 Record the issuance Note: Enter debits before credits. Date General Journal Debit Credit January 01 Bods payablk spayabia Bords paveble 280,000 Record entry Clear entry View general Journal 3. What is the carrying value of the bonds Claire will report on this year's December 31 balance sheet? (Round your final answers to nearest whole dollar amount.) Bonds Payable 2. Provide the ioumal entry to record the interest peyment on March 31, June 30, September 30, and December 31 of this vear, (If no entry is required for a transactionlevent, select ojournal entry required" in the firet account field. Round your final answers nearest whole dollar amount) View transaction list Viaw journal entry worksheet Debit Credit No Date General Journal 1 MArch 31 Intera expensa bonds ravable 2- June 3 Interast expense. Cash on bds payable Interast expense riecunt on bonds peyable D. owTt O bards payable
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