Crane Company issued $684,000 of 10%, 20- year bonds on January 1, 2025, at 103. Interest is payable semiannually on July 1 and January 1. Crane Company uses the straight- line method of amortization for bond premium or discount. Prepare the journal entries to record the following: (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) (a) The issuance of the bonds. (b) The payment of interest and the relate (c) The accrual of interest and the

Crane Company issued $684,000 of 10%, 20- year bonds on January 1, 2025, at 103. Interest is payable semiannually on July 1 and January 1. Crane Company uses the straight- line method of amortization for bond premium or discount. Prepare the journal entries to record the following: (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) (a) The issuance of the bonds. (b) The payment of interest and the relate (c) The accrual of interest and the

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discount
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Date Account Titles and Explanation Debit Credit 1/1/20 7/1/20 12/31/20