Crane Company sold $2,800,000, 7%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1. Crane Company uses the straight-line method to amortize bond premium or discount.

Crane Company sold $2,800,000,7%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1. Crane Company uses the straight-line method to amortize bond premium or discount. Your Answer Correct Answer (Used) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2020, assuming that the bonds sold at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Credit Date Jan. 1, 2020 Debit 2,912,000 Cash Bonds Payable 2,800,000 Premium on Bonds Payable 112,000 Dec 31, 2020 Interest Expense 184,800 Premium on Bonds Payable 11,200 Interest Payable 196,000 Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2020, assuming that the bonds are sold at 98. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit