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Current Attempt in Progress On January 2 , 2 0 1 8 , Crane Corporation, a small company that follows ASPE, issued $ 1 .
Current Attempt in Progress On January Crane Corporation, a small company that follows ASPE, issued $ million of bonds at due on December Legal and other costs of $ were incurred in connection with the issue. Crane has a policy of capitalizing and amortizing the legal and other costs incurred by including them with the bond recorded at the date of issuance. Interest on the bonds is payable each December The $ of issuance costs are being deferred and amortized on a straightline basis over the year term of the bonds. The discount on the bonds is also being amortized on a straightline basis over the years. The straightline method is not materially different in its effect compared with the effective interest method. The bonds are callable at that is at of their face amount and on January the company called a face amount of $ of the bonds and retired them. a Ignoring income taxes, calculate the amount of loss, if any, that the company needs to recognize as a result of retiring $ of bonds in Prepare the journal entry to record the retirement. Round answer to decimal places, eg 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 for the amounts. List all debit entries before credit entries. Date Account Titles and Explanation Debit Credit Jan.
Current Attempt in Progress
On January Crane Corporation, a small company that follows ASPE, issued $ million of bonds at due on December
Legal and other costs of $ were incurred in connection with the issue. Crane has a policy of capitalizing and
amortizing the legal and other costs incurred by including them with the bond recorded at the date of issuance. Interest on the bonds
is payable each December The $ of issuance costs are being deferred and amortized on a straightline basis over the
year term of the bonds. The discount on the bonds is also being amortized on a straightline basis over the years. The straightline
method is not materially different in its effect compared with the effective interest method.
The bonds are callable at that is at of their face amount and on January the company called a face amount of
$ of the bonds and retired them.
a
Ignoring income taxes, calculate the amount of loss, if any, that the company needs to recognize as a result of retiring $
of bonds in Prepare the journal entry to record the retirement. Round answer to decimal places, eg 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 for the amounts. List all debit entries before credit entries.
Date Account Titles and Explanation
Debit
Credit
Jan.
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