On May 1, 2021, Crane Corp. issued $955,000 of 5-year, 8% bonds at 99. The bonds pay interest annually on May 1. Crane's year end is April 30. Record the issue of the bonds on May 1, 2021. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit May 1 Cash 945450 Bonds Payable 945450 e Textbook and Media List of Accounts Calculate the effective rate of the bonds using Excel or a financial calculator. (Round answer to 4 decimal places, e.g. 1.5751.) Effective rate % laps Prepare an effective interest amortization table for this bond. (Round answers to 0 decimal places, e.g. 5,276.) Crane CORP. Bond Discount Amortization Table Effective Interest MethodAnnual Interest Payments Interest Payment Interest Expense Discount Amortization Date Bond Amortized Cost May 1, 2021 $ $ $ May 1, 2022 May 1, 2023 May 1, 2024 May 1, 2025 May 1, 2026 e Textbook and Media List of Accounts YouTube Maps Record the accrual of interest at April 30, 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. Round answers to O decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit Apr. 30 (To accrue interest expense.) e Textbook and Media List of Accounts Record the interest payment on May 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 O for the amounts.) Date Account Titles and Explanation Debit Credit May 1 (To record interest payment.) e Textbook and Media Assuming instead that Crane has a December 31, 2021, year end, prepare the adjusting entry relating to these bonds and the subsequent interest payment on May 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 O for the amounts. Round answers to O decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit Dec. 31 (To accrue interest expense.) May 1 (To record interest payment.) e Textbook and Media List of Accounts Assume that on May 1, 2022, after payment of the interest, Crane redeems all of the bonds at 105. Record the redemption of the bonds. (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 O for the amounts. Round answers to 0 decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit May 1 I (To record redemption of bonds.) e Textbook and Media List of Accounts
