On July 1, 2021, Crane Corp. issued $3,990,000 of 10-year, 5% bonds at $4,316,211. This price resulted

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On July 1, 2021, Crane Corp. issued $3,990,000 of 10-year, 5% bonds at $4,316,211. This price resulted in a 4% market interest rate on the bonds. The bonds pay semi-annual interest on July 1 and January 1, and Crane has a December 31 year end.

Record the issue of the bonds on July 1, 2021. (Credit account titles are automatically indented when the 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
July 1

	(To record issuance of bonds.)

Prepare an effective interest amortization table for the first five interest payments for these bonds. (Round answers to 0 decimal places, e.g. 5,275.)

CRANE CORP. Bond Premium Amortization Table Effective Interest Method—Semi-Annual Interest Payments 5% Bonds Issued at market rate of 4%
Date	Interest Payment	Interest Expense	Premium Amortization	Bond Amortized Cost
July 1, 2021	$	$	$	$
Jan. 1, 2022
July 1, 2022
Jan. 1, 2023
July 1, 2023
Jan. 1, 2024

Record the accrual of interest at December 31, 2021, and the subsequent payment on January 1, 2022. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the 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, 2021


	(To accrue interest expense.)
Jan. 1, 2022

	(To record interest payment.)

Assuming instead that Crane has an August 31 year end, prepare the adjusting entry related to these bonds on August 31, 2021, as well as the subsequent interest payment on January 1, 2022. (Credit account titles are automatically indented when the 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.)