2. Provide the journal entry to record the interest payment on Mar Note: If no entry is required for a transaction/event, select "No j answers to nearest whole dollar amount. Answer is not co
2. Provide the journal entry to record the interest payment on Mar Note: If no entry is required for a transaction/event, select "No j answers to nearest whole dollar amount. Answer is not co
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Transcribed Image Text:es
2. Provide the journal entry to record the interest payment on March 31, June 30, September 30, and December 31 of this year.
transaction/event, select "No journal entry required" in the first account field. Round your final
Note: If no entry is required for a
answers to nearest whole dollar amount.
No
1
Date
March 31
Answer is not complete.
Long-term liabilities
General Journal
Interest expense
Bond discount
CLAIRE CORPORATION
Balance Sheet (Partial)
At December 31
Debit
3. What bonds payable amount will Claire report on this year's December 31 balance sheet?
Note: Round your final answer to nearest whole dollar amount.
Credit
![Required information
[The following information applies to the questions displayed below.]
Claire Corporation is planning to issue bonds with a face value of $260,000 and a coupon rate of 12 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 16 percent. (FV of $1. PV of $1. FVA of $1. and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
Required:
1. Provide the journal entry to record the issuance of the bonds.
Note: 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.
No
1
Date
January 01
Answer is not complete.
General Journal
Cashi
Bond discount
Bonds payablet
Debit
31,200
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52e6e8a9-18e4-418b-93ff-16bea9b0c942%2F3614c693-b32f-442a-9afd-f42339dde3a5%2Fbwk3bf8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Claire Corporation is planning to issue bonds with a face value of $260,000 and a coupon rate of 12 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 16 percent. (FV of $1. PV of $1. FVA of $1. and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
Required:
1. Provide the journal entry to record the issuance of the bonds.
Note: 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.
No
1
Date
January 01
Answer is not complete.
General Journal
Cashi
Bond discount
Bonds payablet
Debit
31,200
Credit
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