Question: Crane Inc. issues $3,000,000, 5-year, 12% bonds at 103, with interest payable annually on January 1. The straight-line method is used to amortize bond premium.

Crane Inc. issues $3,000,000, 5-year, 12% bonds at 103, with interest payable annually on January 1. The straight-line method is used to amortize bond premium. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Your answer is correct. Date Account Titles and Explanation Jan. 1 Cash eTextbook Premium on Bonds Payable eTextbook and Media Bonds Payable List of Accounts Dec 31 Date Account Titles and Explanation Debit 3,090,000 Credit Debit 90,000 3,000,000 Assistance Used 4 Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Assistance Used Attempts: 2 of 4 used Credit

Crane Inc issues $3,000,000,5-year, 12% bonds at 103 , with interest payable annually on January 1 . The straight-line method is used to amortize bond premium. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automotically indented when amount is entered. Do not indent manually! eTextbook and Media Assistance Used erectbook (b) Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent monualyd)

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