Question
a)On September 1, 2017, Crane Corporation issued $595,000 of 10-year, 3% bonds at 95. Interest is payable semi-annually on September 1 and March 1. Crane's
a)On September 1, 2017, Crane Corporation issued $595,000 of 10-year, 3% bonds at 95. Interest is payable semi-annually on September 1 and March 1. Crane's fiscal year end is February 28.
Record the accrual of interest on February 28, 2018, assuming the semi-annual amortization amount for this interest period is $1,004
b)On July 31, 2017, Sunland Inc. issued $550,000 of 5-year, 4% bonds at 104. Interest is payable semi-annually on July 31 and January 31. Sunlands fiscal year end is January 31.
Record the payment of interest on January 31, 2018, assuming the semi-annual amortization amount for this interest period is $1,015
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started