The following section is taken from Crane's balance sheet at December 31, 2021.Current liabilitiesInterest payableLong-term liabilitiesBonds payable (8%, due January 1, 2025)(a)Interest is payable annually on January 1. The bonds are callable on any annual interest date.(b)Journalize the payment of the bond interest on January 1, 2022. (Credit account titles are automatically indented when amount isentered. Do not indent manually.)DateJan. 1,2022eTextbook and MediaList of AccountsSave for Later$33,000412,500Account Titles and ExplanationDate Account Titles and ExplanationJan. 1,2022DebitAttempts: 0 of 5 usedAssume that on January 1, 2022, after paying interest, Crane calls bonds having a face value of $165,000. The call price is 101.Record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually)DebitCreditSubmit AnswerCredit (c)Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds. (Credit account titles areautomatically indented when amount is entered. Do not indent manually.)Date Account Titles and ExplanationDec. 31,2022DebitCredit

Recording of journal entry for the above transaction with necessary calculation are as follows.…

The following section is taken from Crane's balance sheet at December 31, 2021. Current liabilities Interest payable Long-term liabilities Bonds payable (8%, due January 1, 2025) (a) Interest is payable annually on January 1. The bonds are callable on any annual interest date. $33,000 412,500 Journalize the payment of the bond interest on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Jan. 1, 2022 Date Account Titles and Explanation eTextbook and Media Debit Credit

The following section is taken from Crane's balance sheet at December 31, 2021. Current liabilities Interest payable Long-term liabilities Bonds payable (8%, due January 1, 2025) (a) Interest is payable annually on January 1. The bonds are callable on any annual interest date. $33,000 412,500 Journalize the payment of the bond interest on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Jan. 1, 2022 Date Account Titles and Explanation eTextbook and Media Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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