Claire Corporation is planning to issue bonds with a face value of $160,000 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) Note: Use appropriate factor(s) from the tables provided.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Claire Corporation is planning to issue bonds with a face value of $160,000 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)
Note: Use appropriate factor(s) from the tables provided.
Show Transcribed Text
<
Journal entry worksheet
Note: Enter debits before credits.
Record the issuance of the bonds on January 1.
Date
January 01
Record entry
J
General Journal
Clear entry
c
Debit
Credit
View general journal
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 $160,000 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) Note: Use appropriate factor(s) from the tables provided. Show Transcribed Text < Journal entry worksheet Note: Enter debits before credits. Record the issuance of the bonds on January 1. Date January 01 Record entry J General Journal Clear entry c Debit Credit View general journal
Journal entry worksheet
<
1 2 3 4
Record the interest payment on March 31.
Note: Enter debits before credits.
Date
March 31
Record entry
Show Transcribed Text
Long-term liabilities
General Journal
Clear entry
C
CLAIRE CORPORATION
Balance Sheet (Partial)
At December 31
Ċ
Debit
Credit
View general journal
Transcribed Image Text:Journal entry worksheet < 1 2 3 4 Record the interest payment on March 31. Note: Enter debits before credits. Date March 31 Record entry Show Transcribed Text Long-term liabilities General Journal Clear entry C CLAIRE CORPORATION Balance Sheet (Partial) At December 31 Ċ Debit Credit View general journal
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