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On January 1, 2000, Clearwater Corporation sold bonds with a face value of $750,000 and...

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Accounting

  1. On January 1, 2000, Clearwater Corporation sold bonds with a face value of $750,000 and a coupon rate of 9%. The bonds mature in 8 years and pay interest annually every December 31. Clearwater uses the straight-line amortization method. Assume an annual market rate of interest of 10%. (80 POINTS)

Required:

  1. Provide the journal entry to record the issuance of the bonds
  2. Provide a journal entry to record the interest payment on December 31 of this year.
  3. What bonds payable will Clearwater report on December 31, 2003 Balance Sheet?

image

use in excel formula

A B D E F G I 3 4 CLEARWATER CORPORATION 5 6 7 Premium/(Discount) Carrying Value of Amortization Bonds 8 Date Cash Paid Interest Expense 9 10 11 12 13 14 15

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