Crane Company issues $4.4million,10-year,9% bonds at97, with interest payable on December 31. The straight-line method is used to amortize bond discount.

Prepare the journal entry to record the sale of these bonds on January 1, 2022.

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2022, assuming no previous accrual of interest.

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount