E10-20 (Algo) Recording and Reporting a Bond Issued at a Discount (Straight-Line Amortization with Discount Account) LO10-4 On January 1 of this year, Clearwater Corporation sold bonds with a face value of $762,000 and a coupon rate of 8 percent. The bonds 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 9 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) 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. How will the bonds be reported on Clearwater's December 31 Balance Sheet? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Prepare the journal entry to record the issuance of the bonds and interest payment on December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Req 1 and 2 Req 3 Prepare the journal entry to record the issuance of the bonds and interest payment on December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the issuance of the bonds. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal Journal entry worksheet Record the interest payment on December 31, using straight-line amortization. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal 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. How will the bonds be reported on Clearwater's December 31 Balance Sheet? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 How will the bonds be reported on Clearwater's December 31 Balance Sheet? CLEARWATER CORPORATION Balance Sheet (Partial) At December 31 Long-term liabilities