Prepare the journal entry to record the interest payment

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On January 1, 2014, Clearwater Corporation sold a $770,000, 9 percent bond issue (10 percent market rate). The bonds were dated January 1, 2014, pay interest each December 31, and mature in 6 years

Prepare the journal entry to record the interest payment on December 31, 2014. Use straight-line amortization

Show how the interest expense and the bonds payable should be reported on the December 31, 2014, annual financial statements.

Reference no: EM13790683

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