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everything is in screenshots that all the info Crane Company issued $708,000 of 9%,20-year bonds on January 1,2020, at 101 . Interest is payable semiannually
everything is in screenshots that all the info
Crane Company issued $708,000 of 9%,20-year bonds on January 1,2020, at 101 . Interest is payable semiannually on July 1 and January 1. Crane Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1,2020. (c) The accrual of interest and the related amortization on December 31, 2020 . On January 1,2020 , Culver Company sold 12% bonds having a maturity value of $400,000 for $430,326, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1,2025 , with interest payable December 3 of each year. Culver Company allocates interest and unamortized discount or premium on the effective-interest basis. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the interest payment and the amortization for 2020 . (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the interest payment and the amortization for 2022 . (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Step by Step Solution
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