Crane Company issued $630,000, 6%, 20-year bonds on January 1, 2022, at 102. Interest is payable annually on January 1. Crane uses straight-line amortization for bond premium or discount.

(a)

Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2022	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter credit amount
	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter credit amount
	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter credit amount

eTextbook and Media

List of Accounts

Save for Later

Attempts: 0 of 5 used

Submit Answer

(b)

Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2022	enter an account title for the journal entry on December 31, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2022	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Save for Later

Attempts: 0 of 5 used

Submit Answer

(c)

Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2023	enter an account title for the journal entry on January 1, 2023	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2023	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Save for Later

Attempts: 0 of 5 used

Submit Answer

(d)

Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2042	enter an account title for the journal entry on January 1, 2042	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2042	enter a debit amount	enter a credit amount

I already got part a): DB Cash: 642,600 CR Bonds Payable: 630,000 CR Premium on Bonds Payable: 12,600