On September 1, 2020, Crane Corp sold at 105 (plus accrued interest) 5,500 of its $1,000 face value, 10year, 10 nonconvertible bonds with detachable stock warrants Each bond carried 2 detachable warrants each warrant was for one common share at a specified option price of $12 per share Shortly after issuance, the warrants were selling for $6 each Assume that no fair value is available for the bonds Interest is payable on December 1 and June 1 Crane Corp prepares its financial statements in accordance with ASPE Prepare in general journal format the entry to record the issuance of the bonds under both options available under ASPE (Credit account titles are automatically indented when the amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Residual method September 1, 2020 (To record the issuance of the bonds) Allocation of zero to equity (To record the issuance of the bonds)

Question

On September 1, 2020, Crane Corp  sold at 105 (plus accrued interest) 5,500 of its $1,000 face value, 10year, 10  nonconvertible bonds with detachable stock warrants  Each bond carried 2 detachable warrants  each warrant was for one common share at a specified option price of $12 per share  Shortly after issuance, the warrants were selling for $6 each  Assume that no fair value is available for the bonds  Interest is payable on December 1 and June 1  Crane Corp  prepares its financial statements in accordance with ASPE  Prepare in general journal format the entry to record the issuance of the bonds under both options available under ASPE  (Credit account titles are automatically indented when the amount is entered  Do not indent manually ) Date Account Titles and Explanation Debit Credit Residual method  September 1, 2020 (To record the issuance of the bonds) Allocation of zero to equity  (To record the issuance of the bonds)

Accepted Answer

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Date	Account Titles and Explanation	Debit	Credit
Residual method:
September 1, 2020



	(To record the issuance of the bonds)
Allocation of zero to equity:



	(To record the issuance of the bonds)

Question

On September 1, 2020, Crane Corp. sold at 105 (plus accrued interest) 5,500 of its $1,000 face value, 10year, 10% nonconvertible bonds with detachable stock

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