Problem 17-2 On January 1, 2017, Crane Company purchased $310,000, 6% bonds of Aguirre Co. for $284,855. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2022. Crane Company uses the effective-interest method to amortize discount or premium. On January 1, 2019, Crane Company sold the bonds for $286,344 after receiving interest to meet its liquidity needs. Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for-sale. (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 o for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1, 2017 LINK TO TEXT Prepare the amortization schedule for the bonds. (Round answers to o decimal places, e.g. 1,250. Schedule of Interest Revenue and Bond Discount Amortization Effective Interest Method Bonds Purchased to Yield Interest Receivable Bond Or Interest Discount Cash Received Revenue Amortization Carrying Amount of Bonds Date 1/1/17 Schedule of Interest Revenue and Bond Discount Amortization-Effective-Interest Method Bonds Purchased to Yield Interest Receivable Bond Or Interest Discount Cash Received Revenue Amortization Carrying Amount of Bonds Date 1/1/17 7/1/17 1/1/18 7/1/18 1/1/19 7/1/19 1/1/20 7/1/20 1/1/21 7/1/21 1/1/22 Total (c) (d) Prepare the journal entries to record the semiannual interest on (1) July 1, 2017, and (2) December 31, 2017. If the fair value of Aguirre bonds is $288,344 on December 31, 2018, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on January 1, 2017, is a debit of $3,692.) Prepare the journal entry to record the sale of the bonds on January 1, 2019. (e) (Round answers to o decimal places, e.g. 2,500. 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 o for the amounts.) Account Titles and Explanation No. Date (c) (1) July 1, 2017 Debit Credit (2) Dec 31, 2017 (d) Dec 31, 2018 No Udle ACCU -) (1) July 1, 2017 (2) Dec 31, 2017 (d) Dec 31, 2018 (e) Jan 1, 2019