1. On January 1, 2000, Clearwater Corporation sold bonds with a face value of $750,000...
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1. On January 1, 2000, Clearwater Corporation sold bonds with a face value of $750,000 and a coupon rate of 8%. The bonds mature in ten years and pay interest annually every December 31. Clearwater uses the straight-line amortization method. Assume an annual market rate of interest of 9%. (80 POINTS) Required: a. Provide the journal entry to record the issuance of the bonds b. Provide a journal entry to record the interest payment on December 31 of this year. c. What bonds payable will Clearwater report on December 31, 2003 Balance Sheet? CLEARWATER CORPORATION Premium/(Discount) Carrying Value of Amortization Bonds Date Cash Paid Interest Expense
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