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.