Assume that on January 1, 2022, Crane pays the accrual bond interest and calls t

Question

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.g. 5,675.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 To record payment of interest) Jan. 1, 2022 (To record redemption of the bonds) Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Date Accounts title Dr Cr 1 Jan 2022 Interest payable [$530000 * 9%] 47700 To cash 47700 [to record payment of interest] 1 Jan 2022 Bonds payable 530000 Loss on bond 10600 To cash (5300 bonds * $102) 540600 [to record redemption of the bonds]

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