Crane Company issued $1,730,000 of bonds on January 1, 2022.(a)Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 97, and (3) 105. (Credit accounttitles are automatically indented when amount is entered. Do not indent manually.)Your answer is correct.No. Account Titles and Explanation(1)(2)(3)CashBonds PayableCashDiscount on Bonds PayableBonds PayableCashBonds PayableDebit1,730,0001,678,10051,9001,816,500Credit1,730,000I1,730,0001,730,000 (b)(3)CashBonds PayablePremium on Bonds PayableAccount Titles and ExplanationSave for Later1,816,500DebitPrepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually.)1,730,000Credit86,500Attempts: 1 of 4 usedAttempts: 0 of 4 usedSubmit Answer

When bonds are redeemed at par, we will Credit Cash Account.

Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 97, and (3) 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Your answer is correct. No. Account Titles and Explanation (1) (2) Cash Bonds Payable Cash Debit 1,730,000 1.678 100 Credit 1,730,000

Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 97, and (3) 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Your answer is correct. No. Account Titles and Explanation (1) (2) Cash Bonds Payable Cash Debit 1,730,000 1.678 100 Credit 1,730,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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