Claremont Inc. issued a $400,000 bond on January 1, 2020. The bond had a five-year life and an 8% stated rate of interest. The bond contract requires Claremont to pay semiannual dividends each June 30 and December 31. The market rate of interest on January 1, 2020 when Claremont issued the bond was 6%.

Required:

1. Use Excel to determine the cash proceeds from the bond issue on January 1, 2020.

2. Use Excel to construct a bond amortization table for the five-year life of the bond.

3. Record the journal entries for the bond in 2020, do not just write it out! Make a table.

4. Report the effects of the bond on the 2020 income statement and cash flows statement and the balance sheet on December 31, 2020