Required information [The following information applies to the questions displayed below.] Claire Corporation is planning to issue bonds with a face value of $200,000 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. 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.
Required information [The following information applies to the questions displayed below.] Claire Corporation is planning to issue bonds with a face value of $200,000 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. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
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Subject: acounting
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Required information
[The following information applies to the questions displayed below.]
Claire Corporation is planning to issue bonds with a face value of $200,000 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.
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.
Long-term liabilities
Bond discount
Bonds payable
Answer is complete but not entirely correct.
CLAIRE CORPORATION
Balance Sheet (Partial)
At December 31
$
$
2,000
200,000
$ 2,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2Fed20655a-fdca-4b18-8544-444cf3c3e800%2Fxt3xdcp_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 $200,000 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.
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.
Long-term liabilities
Bond discount
Bonds payable
Answer is complete but not entirely correct.
CLAIRE CORPORATION
Balance Sheet (Partial)
At December 31
$
$
2,000
200,000
$ 2,000
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