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Crane Corporation issued $530,000 of 7%, 9-year bonds on January 1, 2023, at face value. The bonds require annual interest payments each December 31. Costs associated with the bond issuance were $25,200, Crane follows ASPE and uses the straight-line method to amortize bond issue costs.

Crane Corporation issued $530,000 of 7%, 9-year bonds on January 1, 2023, at face value. The bonds require annual interest payments each December 31. Costs associated with the bond issuance were $25,200, Crane follows ASPE and uses the straight-line method to amortize bond issue costs.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Crane Corporation issued $530,000 of 7%, 9-year bonds on January 1, 2023, at face value. The bonds require annual interest payments each December 31. Costs associated with the bond issuance were $25,200. Crane follows ASPE and uses the straight-line method to amortize bond issue costs.
Transcribed Image Text:Crane Corporation issued $530,000 of 7%, 9-year bonds on January 1, 2023, at face value. The bonds require annual interest payments each December 31. Costs associated with the bond issuance were $25,200. Crane follows ASPE and uses the straight-line method to amortize bond issue costs.
Prepare the journal entry for the December 31, 2023 interest payment and bond issuance cost amortization. (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. List all debit entries before credit entries.) Account Titles and Explanation interest Expense Bonds Payable Debit Credit 37100
Transcribed Image Text:Prepare the journal entry for the December 31, 2023 interest payment and bond issuance cost amortization. (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. List all debit entries before credit entries.) Account Titles and Explanation interest Expense Bonds Payable Debit Credit 37100
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