On July 1, 2021, Crane Corp. issued $3,990,000 of 10-year, 5% bonds at $4,316,211. This price resulted in a 4% market interest rate on the bonds. The bonds pay semi-annual interest on July 1 and January 1, and Crane has a December 31 year end.

Record the accrual of interest at December 31, 2021, and the subsequent payment on January 1, 2022. (Round answers to o decimal places, eg. 5,275. 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.) Date Account Titles and Explanation Debit Credit Dec. 31, Interest Expense 79800 2021 Bonds Payable 19950 Interest Payable 99750 (To accrue interest expense.) Jan. 1, Interest Payable 99750 2022 99750 Cash (To record interest payment.) e Textbook and Media List of Accounts Assistance Used Your answer is partially correct. Assuming instead that Crane has an August 31 year end, prepare the adjusting entry related to these bonds on August 31, 2021, as well as the subsequent interest payment on January 1, 2022. (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.) Debit Credit Date Aug. 31, 2021 22600 10650 Account Titles and Explanation Interest Expense Bonds Payable Interest Payable (To accrue interest expense.) Interest Payable 33250 Jan. 1, 2022 99750 Cash 99750 No Entry 0 0 0 0 No Entry (To record interest payment.)