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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

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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 $280,000 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 \$1) (Use the appropriate factor(s) from the tables provided.) P10-7 Part 2 2. Provide the Journal entry to record the interest payment on March 31, June 30 , September 30 , and December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.)

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