$\backslash (!\backslash )$

Required information

P$10-7($Algo$)$ Recording and Reporting a Bond Issued at a Discount $($with Discount Account$)$ LO$10-4$

$[$The following information applies to the questions displayed below.$]$

Claire Corporation is planning to issue bonds with a face value of $\backslash (\backslash$$ $130,000\backslash )$ and a coupon rate of $10$ percent. The bonds mature in two years and pay interest quarterly every March $31,$ June $30,$ September $30,$ and December $31.$ All of the bonds were sold on January $1$ of this year. Claire uses the effective$-$interest amortization method and also uses a discount account. Assume an annual market rate of interest of $12$ percent.$($FV of $\backslash$$$1,$ PV of $\backslash$$$1,$ FVA of $\backslash$$$1,$ and PVA of $\backslash$$$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

P$10-7$ Part $3$

$3.$ 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. $\backslash (!\backslash )$

Required information

P$10-7($Algo$)$ Recording and Reporting a Bond Issued at a Discount $($with Discount Account$)$ LO$10-4$

$[$The following information applies to the questions displayed below.$]$

Claire Corporation is planning to issue bonds with a face value of $\backslash (\backslash$$ $130,000\backslash )$ and a coupon rate of $10$ percent. The bonds mature in two years and pay interest quarterly every March $31,$ June $30,$ September $30,$ and December $31.$ All of the bonds were sold on January $1$ of this year. Claire uses the effective$-$interest amortization method and also uses a discount account. Assume an annual market rate of interest of $12$ percent. $($FV of $\backslash$$$1,$ PV of $\backslash$$$1,$ FVA of $\backslash$$$1,$ and PVA of $\backslash$$$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

P$10-7$ Part $2$

$2.$ Provide the journal entry to record the interest payment on March $31,$ June $30,$ September $30,$ and December $31$ of this year. Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount. answers to nearest whole dollar amount.

Answer is not complete.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline No & Date & & General Journal & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & March $31$ & Interest expense & $\backslash [$

$0$

$\backslash ]$ & & $\backslash \backslash$

$\backslash$hline & & Bond discount & $\backslash ((2\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & Cash & $0$ & & $3,250\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $2$ & June $30$ & Interest expense & $\backslash (\backslash$checkmark $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & Bond discount & $0$ & & $\backslash \backslash$

$\backslash$hline & & Cash & $\backslash (\backslash$checkmark $\backslash )$ & & $3,250\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $3$ & September $30$ & Interest expense & $\backslash (\backslash$checkmark $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & Bond discount & $0$ & & $\backslash \backslash$

$\backslash$hline & & Cash & $\backslash (\backslash$checkmark $\backslash )$ & & $3,250\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $4$ & December $31$ & Interest expense & $\backslash (\backslash$checkmark $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & Bond discount & $($ & & $\backslash \backslash$

$\backslash$hline & & Cash & $($ & & $3,250\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$