1) What dollar amount belongs in each letter box? 2) Record the journal entry for the issuance of the bond on January 1, 2022. 3) Record the journal entries to show the accrual of the first years interest on December 31, 2022. 4) Record the journal entry to show the payment of the first year of interest on January 1,

 

1) What dollar amount belongs in each letter box?

2) Record the journal entry for the issuance of the bond on January 1, 2022.

3) Record the journal entries to show the accrual of the first years interest on December 31, 2022.

4) Record the journal entry to show the payment of the first year of interest on January 1, 2023.

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On January 1, 2022, Clear Lake Corporation received cash by issuing $600,000, 9%, 5-year bonds for $578,332 when the market rate was 10%. Interest is paid annually on each January 1, beginning January 1, 2023. The company uses the effective interest method of amortization. Complete the amortization schedule for the first two interest payments below (Round to the nearest dollar.) Date Issue date 1st interest period 2nd interest period Cash Interest to be paid (c) (h) Interest Expense (d) € Discount Amortization (e) (i) Unamortized Discount (a) (f) 3 Bond Carrying Value (b) (g) (1) On January 1, 2022, Clear Lake Corporation received cash by issuing $600,000, 9%, 5-year bonds for $578,332 when the market rate was 10%. Interest is paid annually on each January 1, beginning January 1, 2023. The company uses the effective interest method of amortization. Complete the amortization schedule for the first two interest payments below (Round to the nearest dollar.) Date Issue date 1st interest period 2nd interest period Cash Interest to be paid (c) (h) Interest Expense (d) € Discount Amortization (e) (i) Unamortized Discount (a) (f) 3 Bond Carrying Value (b) (g) (1)

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