Exercise 14-10-Google Chrome Secure l https://edugen.wileyplus.com/edugen/shared

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Exercise 14-10-Google Chrome Secure l https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni Exercise 14-10 On January 1, 2017, Crane Company sold 12% bonds having a maturity value of $450,000 for $494,875, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Crane Company allocates interest and unamortized discount or premium on the effective-interest basis Your answer is partially correct. Try again. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2017 Cash remium on Bonds Payable 94875 onds Payabl

Explanation / Answer

Jan 1 2017 Cash                   4,94,875       Premium on bond Payable                      34,875       Bond payable                  4,60,000 Bond payable will be facevalue of bond and premium on bond payable is extra paid amount

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