Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98. On January 1, 2024, when the carrying value of the bonds was $6,140,160, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period has already been paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2024enter an account title for the journal entry on January 1, 2024enter a debit amountenter a credit amount enter an account title for the journal entry on January 1, 2024enter a debit amountenter a credit amount enter an account title for the journal entry on January 1, 2024enter a debit amountenter a credit amount enter an account title for the journal entry on January 1, 2024enter a debit amountenter a credit amount

Solution: When bonds are redeemed before maturity date, difference between carrying value and…

Answered: Crane Electric sold $6,240,000, 10%,…

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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Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98.

On January 1, 2024, when the carrying value of the bonds was $6,140,160, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period has already been paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2024	enter an account title for the journal entry on January 1, 2024	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2024	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2024	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2024	enter a debit amount	enter a credit amount

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