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.
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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please help me with this question and explain in steps
![!
Required information
[The following information applies to the questions displayed below.]
Claire Corporation is planning to issue bonds with a face value of $110,000 and a
coupon rate of 6 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 8 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
$
$
498 X
107,407 X
$ 109,555](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99d6c510-5b8c-4c17-ac3a-87bddda960ff%2F350564cf-8e90-4e85-90f6-2b1547454f90%2Fwa0gg88_processed.png&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 $110,000 and a
coupon rate of 6 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 8 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
$
$
498 X
107,407 X
$ 109,555
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Follow-up Question
why is the bonds payable wrong?
![!
Required information
[The following information applies to the questions displayed below.]
Claire Corporation is planning to issue bonds with a face value of $110,000 and a
coupon rate of 6 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 8 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
$
$
2,094
107,906 X
Return to question
$
107,905](https://content.bartleby.com/qna-images/question/99d6c510-5b8c-4c17-ac3a-87bddda960ff/06ba5cc4-2dfb-47fc-b60b-e2531c968775/5oe9s6j_processed.png)
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 $110,000 and a
coupon rate of 6 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 8 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
$
$
2,094
107,906 X
Return to question
$
107,905
Solution
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