Crane Company sold $3,330,000, 7%, 10-year bonds on January 1, 2017. The bonds w

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Crane Company sold $3,330,000, 7%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.

listory Bookmarks Window Help 2 edugen.wileyplus.com WileyPLUS: MyWileyPLUS | Help | Con ACCOUNTING 1 / (Account Kimmel, Accounting, 6e Oradebook ORION Donldbl sTextbook Assignment nt CALCULATOR FULL SCREEN PRINTER VERSION E Your answer is correct. Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 105 and (2) 96. account tities are automatically Indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation 1. 1/1/17 Cash Debit Credit 3496500 Premium on Bonds Payable 166500 Bonds Payable 3330000 2. 1/1/17[cash 3196800 Discount on Bonds Payable 133200 T3330000 Bonds Payable SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Polic your instructor Attemats 1 of 15 used

Explanation / Answer

Annual Interets Payment @7% Interets to be Paid(a) Interest Expense to be recorded (a-b) Premium Amortization (b) Unamortized Premium Bond Carrying Value Issue date       1,66,500.00     33,30,000.00 1         2,33,100.00    2,33,100.00                     2,16,450.00                  16,650.00       1,49,850.00     33,30,000.00 2         2,33,100.00    2,33,100.00                     2,16,450.00                  16,650.00       1,33,200.00     33,30,000.00 3         2,33,100.00    2,33,100.00                     2,16,450.00                  16,650.00       1,16,550.00     33,30,000.00 4         2,33,100.00    2,33,100.00                     2,16,450.00                  16,650.00           99,900.00     33,30,000.00 Annual Interets Payment @7% Interets to be Paid(a) Interest Expense to be recorded (a+b) Discount Amortization (b) Unamortized discount Bond Carrying Value Issue date       1,33,200.00     33,30,000.00 1         2,33,100.00    2,33,100.00                     2,19,780.00                  13,320.00       1,19,880.00     33,30,000.00 2         2,33,100.00    2,33,100.00                     2,19,780.00                  13,320.00       1,06,560.00     33,30,000.00 3         2,33,100.00    2,33,100.00                     2,19,780.00                  13,320.00           93,240.00     33,30,000.00 4         2,33,100.00    2,33,100.00                     2,19,780.00                  13,320.00           79,920.00     33,30,000.00

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