Crane Company issued $610,000, 10%, 10-year bonds on December 31, 2021, for $540,000. Interest is payable...

Transcribed Image Text:

Crane Company issued $610,000, 10%, 10-year bonds on December 31, 2021, for $540,000. Interest is payable annually on December 31. Crane Company uses the straight-line method to amortize bond premium or discount. (a) (b) Your answer is partially correct. Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2022. (Crdit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 2022 Discount on Bonds Payable Debit Credit Crane Company issued $610,000, 10%, 10-year bonds on December 31, 2021, for $540,000. Interest is payable annually on December 31. Crane Company uses the straight-line method to amortize bond premium or discount. (a) (b) Your answer is partially correct. Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2022. (Crdit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 2022 Discount on Bonds Payable Debit Credit