80.2K

Verified Solution

Link Copied!

On July 1, 2021, Crane Satellites Corporation issued $1,100,000 of 10-year, 5% bonds to yield a market interest rate of 4%. The bonds pay semi-annual interest on July 1 and January 1. Crane has a December 31 year end and records adjusting entries annually. Crane received $1,189,931 when issuing the bonds. Click here to view the factor table. Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5,275.) CRANE SATELLITES CORPORATION Bond Premium Amortization Semi- annual interest periods Interest to be paid Interest Expense to be Recorded Premium Amortization Unamortized Premium July 1/21 $ $ Jan. 1/22 $ $ $ July 1/22 Jan. 1/23 List of Accounts 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. List all debit entries before credit entries. Round all amounts to the nearest dollar, eg. 5,275.) Date Account Titles and Explanation Debit Credit 2021 July 1 Prepare the adjusting entry on December 31, 2021, to accrue the interest on the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, e.g. 5,272.) Debit Credit Date Account Titles and Explanation 2021 Dec. 31 List of Accounts Show the statement of financial position presentation of the liabilities at December 31, 2021. (Round all amounts to the nearest dollar, eg. 5,275.) CRANE SATELLITES CORPORATION Statement of Financial Position (Partial) Current liabilities $ Non-current liabilities Record the payment of interest on January 1, 2022, and July 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, eg. 5,275.) Debit Credit Date Account Titles and Explanation 2022 Jan. 1 July 1 List of Accounts Prepare the adjusting entry on November 30, 2021, to accrue the interest on the bonds, assuming the company's year end was November 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, eg. 5,275.) Debit Credit Date Account Titles and Explanation 2021 Nov. 30 Record the payment of interest on January 1, 2022, assuming the company's year end was November 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, eg. 5,275.) Debit Credit Date Account Titles and Explanation 2022 Jan. 1

Answer & Explanation Solved by verified expert

See Answer