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Presented below is an amortization schedule related to Crane Companys 5-year, $110,000 bond with a 7% interest rate and a 4% yield, purchased on December

Presented below is an amortization schedule related to Crane Companys 5-year, $110,000 bond with a 7% interest rate and a 4% yield, purchased on December 31, 2018, for $124,691.

Date

Cash Received

Interest Revenue

Bond Premium Amortization

Carrying Amount of Bonds

12/31/18

$124,691

12/31/19

$7,700 $4,988 $2,712 121,979

12/31/20

7,700 4,879 2,821 119,158

12/31/21

7,700 4,766 2,934 116,224

12/31/22

7,700 4,649 3,051 113,173

12/31/23

7,700 4,527 3,173 110,000

The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end.

12/31/19

12/31/20

12/31/21

12/31/22

12/31/23

Amortized cost

$121,979 $119,158 $116,224 $113,173 $110,000

Fair value

$121,400 $121,000 $118,000 $114,300 $110,000

(a) Prepare the journal entry to record the purchase of these bonds on December 31, 2018, assuming the bonds are classified as held-to-maturity securities.
(b) Prepare the journal entry related to the held-to-maturity bonds for 2019.
(c) Prepare the journal entry related to the held-to-maturity bonds for 2021.
(d) Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale.
(e) Prepare the journal entries related to the available-for-sale bonds for 2019.
(f) Prepare the journal entries related to the available-for-sale bonds for 2021.

(Credit account titles are automatically indented when 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.)

No.

Date

Account Titles and Explanation

Debit

Credit

(a)

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

(b)

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

(c)

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

(d)

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

(e)

choose a transaction date

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

(To record interest revenue.)

enter an account title to record adjustment

enter a debit amount

enter a credit amount

enter an account title to record adjustment

enter a debit amount

enter a credit amount

(To record adjustment.)

(f)

choose a transaction date

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

enter an account title to record interest revenue

enter a debit amount

enter a credit amount

(To record interest revenue.)

enter an account title to record adjustment

enter a debit amount

enter a credit amount

enter an account title to record adjustment

enter a debit amount

enter a credit amount

(To record adjustment.)

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