00 8 E10-21 (Static) (Chapter Supplement) Recording and Reporting a Bond Issued at a Discount (Straight- Line Amortization without Discount Account) LO10-4 10 points On January 1 of this year, Clearwater Corporation sold bonds with a face value of $750,000 and a coupon rate of 8 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 9 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) eBook Required: 1.&2. Prepare the journal entry to record the issuance of the bonds and the interest payment on December 31 of this year. 3. What bonds payable amount will Clearwater report on its December 31 balance sheet? Print Complete this question by entering your answers in the tabs below. References Req 1 and 2 Req3 Prepare the journal entry to record the issuance of the bonds and the interest payment on December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date Debit Credit 1 January 01 701,867 General Journal Cash Bonds payable Discount on bonds payable 2 December 31 Interest expense Discount on bonds payable Cash 8 E10-21 (Static) (Chapter Supplement) Recording and Reporting a Bond Issued at a Discount (Straight- Line Amortization without Discount Account) LO10-4 10 points On January 1 of this year, Clearwater Corporation sold bonds with a face value of $750,000 and a coupon rate of 8 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 9 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) eBook Required: 1.&2. Prepare the journal entry to record the issuance of the bonds and the interest payment on December 31 of this year. 3. What bonds payable amount will Clearwater report on its December 31 balance sheet? Print Complete this question by entering your answers in the tabs below. References Req 1 and 2 Reg 3 What bonds payable amount will Clearwater report on its December 31 balance sheet? CLEARWATER CORPORATION Balance Sheet (Partial) At December 31 Long-term liabilities Bonds payable Discount on bonds payable $