Claire Corporation is planning to issue bonds with a face value of $170,000 and a coupon rate of 10 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. 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. > Answer is complete but not entirely correct. Long-term liabilities Bonds payable Bond discount CLAIRE CORPORATION Balance Sheet (Partial) At December 31 $ $ 170,000 0 ☑ $ 0 ×
Claire Corporation is planning to issue bonds with a face value of $170,000 and a coupon rate of 10 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. 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. > Answer is complete but not entirely correct. Long-term liabilities Bonds payable Bond discount CLAIRE CORPORATION Balance Sheet (Partial) At December 31 $ $ 170,000 0 ☑ $ 0 ×
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Claire Corporation is planning to issue bonds with a face value of $170,000 and a coupon rate of 10 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.
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.
× Answer is complete but not entirely correct.
Long-term liabilities
Bonds payable
Bond discount
CLAIRE CORPORATION
Balance Sheet (Partial)
At December 31
$
$
170,000
0 ×
$
0
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