In each of the following independent cases, the company closes its books on December 31. (a) Crane Co. sells $509,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to decimal places, eg: 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Carrying Cash Interest Discount Amount of Pald Expense Amortized Bonds Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, eg, 1.25124 and the final answers to decimal places eg. 58,971. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered Do not indent manually) Date Account Titles and Explanation Debit Credit 3/1/20 3/121 Cheyenne Co. sells $403,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021. Cheyenne buys back $132.990 worth of bonds for $138,990 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to decimal places, es 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Carry Interest Premium Amour Expense Amortized Cash Paid Date Bon 6/1/20 $ $ $ $ 12/1/20 6/1/21 12/1/21 6/1/22 12/1/22 6/1/23 12/1/23 6/1/24 Difference due to rounding * Difference due to rounding Prepare all of the relevant journal entries from the time of sale until December 31, 2022. (Assume that no reversing entries were made) (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answers to O decimal places eg. 58,971. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit 6/1/20 Debit 12/1/20 I 12/31/20 6/1/21 10/1/21 (To record interest expense and premium amortization) 10/1/21 (To record buy back of bonds) 12/1/21 12/31/21 6/1/22 12/1/22
