Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On September 30,2012 , Crane Company issued 9% bonds with a par value of $640,000 due in 20 years. They were issued at 99 and
On September 30,2012 , Crane Company issued 9% bonds with a par value of $640,000 due in 20 years. They were issued at 99 and were callable at 104 at any date after September 30,2017 . Because Crane Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30,2018 , and to issue new bonds. New 7% bonds were sold in the amount of $870,000 at 104: they mature in 20 years. Crane Company uses straight-line amortization. Interest payment dates are March 31 and September 30. Prepare the entry required on December 31,2018 , to accrue interest and amortize the premium on 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 0 for the amounts. Round answers to 0 decimal places, e.8. 5,275.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started