Question

If you could show how the interest values are calculated I would really appreciate that. Thank you

Also, what is  the carrying value of the bonds Claire will report on this year's December 31 balance sheet?

Required information [The following information applies to the questions displayed below.] Claire Corporation is planning to issue bonds with a face value of $290,000 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 $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) 2. Provide the journal entry to record the interest payment on March 31, June 30, September 30, and December 31 of this year. (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.)

Answer 1

Table values are based on:
n=	8	Interest =$290,000*10%*3/12 =$7,250
i=	3.0%
Cash Flow	Table Value	Amount	Present Value
Interest	7.01969	$7,250	$50,893
Principal	0.78941	$2,90,000	$2,28,929
Price of Bond			$2,79,822
Discount on Bonds =$290,000 - $279,822 =$10,178
Amortization table
Date	Interest Payment($290,000*2.5%)	Interest expenses(Bond carrying amount*3%)	Discount amorrtization	Unamortized discount	Bond carrying amount
Col I	Col II	Col III	Col IV(Col III - Col II)	Col V(Col VI - Col IV)	Col VI
Jan-01				10,178	2,79,822
Mar-31	7,250	8,395	1,145	9,033	2,80,967
Jun-30	7,250	8,429	1,179	7,854	2,82,146
Sep-30	7,250	8,464	1,214	6,640	2,83,360
Dec-31	7,250	8,501	1,251	5,389	2,84,611
Mar-31	7,250	8,538	1,288	4,101	2,85,899
Jun-30	7,250	8,577	1,327	2,774	2,87,226
Sep-30	7,250	8,617	1,367	1,407	2,88,593
Dec-31	7,250	8,657	1,407	0	2,90,000
	Date	Accounts and explanation	Debit(in $)	Credit(in $)
	Mar-31	Interest expenses	8,395
		Discount on Bonds payable		1,145
		Cash		7,250
	Jun-30	Interest expenses	8,429
		Discount on Bonds payable		1,179
		Cash		7,250
	Sep-30	Interest expenses	8,464
		Discount on Bonds payable		1,214
		Cash		7,250
	Dec-31	Interest expenses	8,501
		Discount on Bonds payable		1,251
		Cash		7250
	On December 31 of 1st year the Balance sheet value of the Bonds payable is $284,611