Prepare the journal entry to record the payment of interest on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record interest payment.)
Prepare the journal entry to record the payment of interest on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record interest payment.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Prepare the journal entry to record the payment ofinterest on January 1, 2022. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
Date Account Titles and Explanation
Debit
Credit
Jan. 1
(To record interest payment.)
eTextbook and Media
List of Accounts
Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 100 on January 1, 2023. (Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for
the account titles and enter O for the amounts.)
Date Account Titles and Explanation
Debit
Credit
Jan. 1
(To record redemption of bonds.)
eTextbook and Media
List of Accounts
Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 96. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts.)
Date Account Titles and Explanation
Debit
Credit
Jan. 1
(To record redemption of bonds.)
eTextbook and Media
List of Accounts

Transcribed Image Text:On January 1, 2021, Crane Ltd. issued $640,000 of 5%, 5-year bonds. The bonds were issued to yield a market interest rate of 6%.
Crane's year end is December 31. On January 1, 2023 immediately after making and recording the semi-annual interest payment,
Crane redeemed the bonds. A partial bond amortization schedule is presented below.
Semi-Annual
Interest
Interest
Bond
Interest Period
Payment
Expense Amortization Amortized Cost
Jan. 1, 2021
$612,703
July 1, 2021
16,000
$18,381
$2,381
615,084
Jan. 1, 2022
16,000
18.453
2,453
617,537
July 1, 2022
16,000
18,526
2.526
620,063
Jan. 1, 2023
16,000
18,602
2,602
622,665
Prepare the journal entry to record the payment of interest on July 1, 2021 (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles and Explanation
Debit
Credit
July 1
(To record interest payment.)
eTextbook and Media
List of Accounts
Prepare the journal entry to accrue the interest expense on December 31, 2021. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
Date Account Titles and Explanation
Debit
Credit
Dec. 31
(To accrue interest expense.)
eTextbook and Media
List of Accounts
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