Question

On June 30, 2020, Crane Limited issued $6 million of 20-year, 14% bonds for $6,902,766, which provides a yield of 12%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31.

Prepare the journal entries to record the following transactions: (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.)

1.		The issuance of the bonds on June 30, 2020
2.		The payment of interest and the amortization of the premium on December 31, 2020
3.		The payment of interest and the amortization of the premium on June 30, 2021
4.		The payment of interest and the amortization of the premium on December 31, 2021

Date	Account Titles and Explanation	Debit	Credit
June 30, 2020	enter an account title for the journal entry on June 30	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on June 30	enter a debit amount	enter a credit amount
Dec. 31, 2020	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
June 30, 2021	enter an account title for the journal entry on June 30	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on June 30	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on June 30	enter a debit amount	enter a credit amount
Dec. 31, 2021	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

  

  

Show the proper presentation for the liability for bonds payable on the December 31, 2020 SFP. (Round answer to 0 decimal places, e.g. 5,275.)

Crane Limited Statement of Financial Position (Partial) choose the accounting period                                                                      For the Quarter Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020
select an opening section name                                                                      Current AssetsTotal Intangible AssetsTotal Long-term LiabilitiesLong-term debt InvestmentsTotal Property, Plant and EquipmentCurrent LiabilitiesTotal Partners' EquityTotal Non-current LiabilitiesTotal Current LiabilitiesTotal AssetsIntangible AssetsLong-term LiabilitiesPartners' EquityTotal Long-term InvestmentsProperty, Plant, and EquipmentTotal Current AssetsTotal Liabilities and Partners' EquityTotal Liabilities
enter a balance sheet item		$enter a dollar amount

Answer 1