Problem 15-01A a-f (Part Level Submission) (Video) On May 1, 2020, Crane Corp. i

Question

Problem 15-01A a-f (Part Level Submission) (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 lissuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 1, 2020 Cash 530000 Bonds Payable 530000 Click if you would like to Show Work for this question: Open blank Show Work Copy Show Work from Previous attempt

Explanation / Answer

Date Account titles and explanation Debit Credit Dec. 31, 2020 Interest Expense($530,000 * 9% * 8/12) $31,800 Interest Payable $31,800

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