Crane Company issued $310,000,6 %, 10-year bonds on January 1, 2022, for $333,936. This price resulted in an effective - interest rate of 5% on the bonds. Interest is payable annually on January 1. Crane uses the effective - interest method to amortize bond premium or discount. Prepare the journal entry to record accrual of interest and the premium amortization on December 31, 2022.

Crane Company issued $310,000,6 %, 10-year bonds on January 1, 2022, for $333,936. This price resulted in an effective - interest rate of 5% on the bonds. Interest is payable annually on January 1. Crane uses the effective - interest method to amortize bond premium or discount. Prepare the journal entry to record accrual of interest and the premium amortization on December 31, 2022.

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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