Question
On July 1, 2021, Crane Satellites Corporation issued $1,100,000 of 10-year, 5% bonds to yield a market interest rate of 4%. The bonds pay semi-annual
On July 1, 2021, Crane Satellites Corporation issued $1,100,000 of 10-year, 5% bonds to yield a market interest rate of 4%. The bonds pay semi-annual interest on July 1 and January 1. Crane has a December 31 year end and records adjusting entries annually. Crane received $1,189,931 when issuing the bonds.
Prepare the adjusting entry on November 30, 2021, to accrue the interest on the bonds, assuming the companys year end was November 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, e.g. 5,275.)
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