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E10-20 (Algo) Recording and Reporting a Bond Issued at a Discount (Straight-Line Amortization with Discount Account) L010-4 On January 1 of this year, Clearwater Corporation
E10-20 (Algo) Recording and Reporting a Bond Issued at a Discount (Straight-Line Amortization with Discount Account) L010-4 On January 1 of this year, Clearwater Corporation sold bonds with a face value of $769,000 and a coupon rate of 7 percent. The bonc mature in 10 years and pay interest annually every December 31. Clearwater uses the straight-line amortization method and also uses a discount account. Assume an annual market rate of interest of 8 percent. (FV of \$1, PV of \$1, FVA of \$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. Required: 1.\&2. Prepare the journal entry to record the issuance of the bonds and the interest payment on December 31 of this year. 3. What bonds payable amount will Clearwater report on its December 31 balance sheet? Complete this question by entering your answers in the tabs below. Prepare the journal entry to record the issuance of the bonds and interest payment on December 31 of this year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to whole dollars. E10-20 (Algo) Recording and Reporting a Bond Issued at a Discount (Straight-Line Amortization with Discount Account) L010-4 On January 1 of this year, Clearwater Corporation sold bonds with a face value of $769,000 and a coupon rate of 7 percent. The bon mature in 10 years and pay interest annually every December 31. Clearwater uses the straight-line amortization method and also use a discount account. Assume an annual market rate of interest of 8 percent. ( of $1,PV of $1, FVA of $1, and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required: 1.\&2. Prepare the journal entry to record the issuance of the bonds and the interest payment on December 31 of this year. 3. What bonds payable amount will Clearwater report on its December 31 balance sheet? Complete this question by entering your answers in the tabs below. What bonds payable amount will Clearwater report on its December 31 balance sheet? Note: Round your intermediate calculations and final answers to whole dollars
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