Crane Company issued $310,000,6 %, 10-year bonds on January 1, 2022, for $333,936. This price resulted in an effective - interest rate of 5% on the bonds. Interest is payable annually on January 1. Crane uses the effective - interest method to amortize bond premium or discount. Prepare the journal entry to record accrual of interest and the premium amortization on December 31, 2022.

Crane Company issued $310,000,6 %, 10-year bonds on January 1, 2022, for $333,936. This price resulted in an effective - interest rate of 5% on the bonds. Interest is payable annually on January 1. Crane uses the effective - interest method to amortize bond premium or discount. Prepare the journal entry to record accrual of interest and the premium amortization on December 31, 2022.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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