Problem 15-01A - (Video) On May 1, 2020, Crane Corp. issued $530,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2020, and pay interest annually on May 1. Financial statements are prepared annually on December 31. Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation May 1, 2020 Cash 530000 Bords Payable 530000 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT LINK TO TEXT Your answer is correct. Prepare the adjusting entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to o decimal places,.. 5,675.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 interest Expense 31800 Interest Payable 31800 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER UN TO TEXT LINK TO TEXT Show the balance sheet presentation on December 31, 2020. (Enter account name only and do not provide descriptive information. Round answers to o decimal places, e.g. 5,675.) Crane Corp. Balance Sheet (Partial) December 31, 2020 Current abilities Interest Payable 31800 Long-term Liabilities Bonds Payable 530000 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT LINK TO TEXT Prepare the journal entry to record payment of interest on May 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not Indent manually. Round answers to decimal places, e.. 5,675.) Date Account Titles and Explanation Debit Credit May 1, 2021 interest Expense Interest Payable 31800 Cash SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare the adjusting entry to record the accrual of interest on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not Indent manually. Round answers to o decimal places, e.g. 5,675.) Date Account Titles and Explanation Debit Credit Dec 31, 2021 interest Expense Interest Payable Assume that on January 1, 2022, Crane pays the accrual bond interest and calls the bonds. The call price is 102. Record the payment of interest and redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to o decimal places, e... 5,675.) Data Account Titles and Explanation Debit Credit Jan 1, 2022 Interest Payable Cash (To record payment of interest) Jan 1, 2022 Bonds Payable Loss on Bond Redemption Cash (To record redemption of the bonds) Click If Vou would like to show wark for this is
