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How do I do this? what are the calculations? Required information P10-7 (Algo) Recording and Reporting a Bond Issued at a Discount (with Discount Account)
How do I do this? what are the calculations?
Required information P10-7 (Algo) Recording and Reporting a Bond Issued at a Discount (with Discount Account) LO10-4 [The following information applies to the questions displayed below.] Claire Corporation is planning to issue bonds with a face value of $200,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 12 percent. ( FV of $1, PV of $1, FVA of $1, and Pva of $i) (Use the appropriate factor(s) from the tables provided.) 10-7 Part 1 equired: Provide the journal entry to record the suance of the bonds. (If no entry is required or a transaction/event, select "No journal ntry required" in the first account field. Round our final answers to nearest whole dollar mount.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 01 Cash Bond discount Bonds payableStep by Step Solution
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