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Exercise 14-10 (Part Level Submission) On January 1, 2020, Crane Company sold 12% bonds having a maturity value of $750,000 for $869,779, which provides the
Exercise 14-10 (Part Level Submission) On January 1, 2020, Crane Company sold 12% bonds having a maturity value of $750,000 for $869,779, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Crane Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Your answer is correct. Prepare the journal entry at the date of the bond issuance. (Round answer to O 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.) Debit Credit Date Account Titles and Explanation January 1, 2020 Cash 869,779 Bonds Payable 750,000 Premium on Bonds Pay, 119,779 (b) Your answer is partially correct. Try again. Prepare a schedule of interest expense and bond amortization for 2020-2022. (Round answer to 0 decimal places, e.g. 38,548.) Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Interest Premium Expense Amortized Cash Paid Carrying Amount of Bonds Date 1/1/20 869,779 12/31/20 90000 86977 3022 866757 90000 12/31/21 12/31/22 90000 Click if you would like to Show Work for this question: Open Show Work
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