On January 1, 2017, Crawford Corporation issued five-year, 2% bonds payable with a face value of...
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On January 1, 2017, Crawford Corporation issued five-year, 2% bonds payable with a face value of $2,700,000. The bonds were issued at 88 and pay interest on January 1 and July 1. Crawford amortizes bond discounts using the straight-line method. On December 31, 2019, Crawford retired the bonds early by purchasing them at a market price of 94. The company's fiscal year ends on December 31. Read the requirements. Requirement 1. Journalize the issuance of the bonds on January 1, 2017. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Requirements 2017 Jan 1 1. Journalize the issuance of the bonds on January 1, 2017. 2. Record the semiannual interest payment and amortization of bond discount on July 1, 2017. 3. Record the interest accrual and discount amortization on December 31, 2017. 4. Calculate the carrying value of the bonds payable on December 31, 2019, prior to their retirement. 5. Calculate the gain loss on the retirement of the bonds payable on loss will appear in the December 31, 2019. Indicate where this gain financial statements. Print Done On January 1, 2017, Crawford Corporation issued five-year, 2% bonds payable with a face value of $2,700,000. The bonds were issued at 88 and pay interest on January 1 and July 1. Crawford amortizes bond discounts using the straight-line method. On December 31, 2019, Crawford retired the bonds early by purchasing them at a market price of 94. The company's fiscal year ends on December 31. Read the requirements. Requirement 1. Journalize the issuance of the bonds on January 1, 2017. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Requirements 2017 Jan 1 1. Journalize the issuance of the bonds on January 1, 2017. 2. Record the semiannual interest payment and amortization of bond discount on July 1, 2017. 3. Record the interest accrual and discount amortization on December 31, 2017. 4. Calculate the carrying value of the bonds payable on December 31, 2019, prior to their retirement. 5. Calculate the gain loss on the retirement of the bonds payable on loss will appear in the December 31, 2019. Indicate where this gain financial statements. Print Done
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