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On January 1 of this year, Clearwater Corporation sold bonds with a face value of...

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Accounting

On January 1 of this year, Clearwater Corporation sold bonds with a face value of $758,000 and a coupon rate of 6 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 7 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 answer to whole dollars.)

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Part of my answer may all ready be wrong...

Journal entry worksheet Record the interest payment on December 31, using straight-line amortization. Note: Enter debits before credits. Date General Journal Debit Credit December 31 nterest expense Discount on bonds payable Cash Record entry Clear entry View general journal

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