Question
On June 30, 2020, Crane Limited issued $6 million of 20-year, 14% bonds for $6,902,766, which provides a yield of 12%. The company uses the
On June 30, 2020, Crane Limited issued $6 million of 20-year, 14% bonds for $6,902,766, which provides a yield of 12%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31.
Prepare the journal entries to record the following transactions: (Round answers to 0 decimal places, e.g. 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 0 for the amounts.)
1. | The issuance of the bonds on June 30, 2020 | |
2. | The payment of interest and the amortization of the premium on December 31, 2020 | |
3. | The payment of interest and the amortization of the premium on June 30, 2021 | |
4. | The payment of interest and the amortization of the premium on December 31, 2021 |
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
June 30, 2020 | enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | |
Dec. 31, 2020 | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | |
enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | |
June 30, 2021 | enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | |
enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | |
Dec. 31, 2021 | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | |
enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount |
eTextbook and Media
List of Accounts
Show the proper presentation for the liability for bonds payable on the December 31, 2020 SFP. (Round answer to 0 decimal places, e.g. 5,275.)
Crane Limited Statement of Financial Position (Partial) choose the accounting period For the Quarter Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020 | ||
---|---|---|
select an opening section name Current AssetsTotal Intangible AssetsTotal Long-term LiabilitiesLong-term debt InvestmentsTotal Property, Plant and EquipmentCurrent LiabilitiesTotal Partners' EquityTotal Non-current LiabilitiesTotal Current LiabilitiesTotal AssetsIntangible AssetsLong-term LiabilitiesPartners' EquityTotal Long-term InvestmentsProperty, Plant, and EquipmentTotal Current AssetsTotal Liabilities and Partners' EquityTotal Liabilities | ||
enter a balance sheet item | $enter a dollar amount |
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