Crane Company issues $$2\mathrm{.}2$ million, $20-$year, $9\%$ bonds at $99,$ with interest payable on December $31.$ The straight$-$line

method is used to amortize bond discount.

$($a$)$

Your answer is correct.

Prepare the journal entry to record the sale of these bonds on January $1,2025.($List all debit entries before

credit entries. Credit account titles are automatically indented when amount is entered. Do not

indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for

the amounts.$)$

ount Titles and Explanation

Debit

Credit

ash

$2178000$

iscount on Bonds Payable

Bonds Payable

eTextbook and Media

List of Accounts

Attempts: unlimited

$($b$)$

Prepare the journal entry to record interest expense and bond discount amortization on December $31,2025,$

assuming no previous accrual of interest. $($List all debit entries before credit entries. Credit account

titles are automatically indented when amount is entered. Do not indent manually. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Dec.

$31$