What bonds payable amount will clearwater report

Assignment Help Financial Accounting

Reference no: EM131881695

Problem

On January 1 of this year, Clearwater Corporation sold bonds with a face value of $900,000 and a coupon rate of 9 percent. The bonds mature in 10 years and pay interest annually every December 31. Clearwater uses the straight-line amortization method and does not use a discount account. Assume an annual market rate of interest of 10 percent. ( i am confused about the "does not use a discount account" part as well and this is all the info the question gives)

Prepare the journal entry to record the issuance of the bonds.

Prepare the journal entry to record the interest payment on December 31 of this year?

What bonds payable amount will Clearwater report on its December 31 balance sheet?

Reference no: EM131881695

Questions Cloud

What amount of accrued interest payable should report : On January 31, 2016, B Corp. issued $500,000 face value, 9% bonds for $500,000 cash. The bonds are dated December 31, 2015, and mature on December 31, 2025.

Define the straight-line method of amortization : Gammell Company issued $51,400 of 9% bonds with annual interest payments. The bonds mature in ten years. The bonds were issued at $48,700.

Calculate the value of the loan at the end of year 7 : What is the value of this amount, given that interest on the Credit Union's loans is 10%? What is the value ofthe loan at the end of year 7?

Compute the depreciation expense for each of first two years : Compute the depreciation expense for each of the first two years, using the sum of the years -digits method.

What bonds payable amount will clearwater report : What bonds payable amount will Clearwater report on its December 31 balance sheet? Prepare journal entry to record interest payment on December 31 of this year?

What should be the stock price today : Non-Constant growth stock Valuation Stewart Industries just paid a $3.00 per share dividend on its common stock yesterday (i.e., D0 = $3.00).

What is the selling price of the bonds : George Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant.

What were the weighted-average accumulated expenditures : What were the weighted-average accumulated expenditures for 2017? What were weighted-average accumulated expenditures for 2018 by end of construction period?

How much money will the account have after 10 years : After 10 years, I start using the account, withdrawing X dollars per month. I emptied the account in five years. How big is X.

User Account

All Pages