Problem 10-09A

Crane Company sold $3,330,000, 7%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.

Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 105 and (2) 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entries to record interest expense for 2022 under both of the bond issuances assuming they sold at: (1) 105 and (2) 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 105 at December 31, 2022.

Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 96 at December 31, 2022.

No. Date Account Titles and Explanation Debit Credit 1. 1/1/22 2. 1/1/22 Prepare amortization table for issuance of the bonds sold at 105 for the first three interest payments. Annual Interest Periods Interest to Be Paid Interest Expense Premium to Be Recorded Amortization Unamortized Premium Bond Carrying Value Issue date $ $ $ $ 1 2 3 Prepare amortization table for issuance of the bonds sold at 96 for the first three interest payments. Annual Interest Periods Interest to Interest Expense Discount Be Paid to Be Recorded Amortization Unamortized Discount Bond Carrying Value Issue date $ $ $ $ $ $ 1 2 3 Debit Credit No. Date Account Titles and Explanation 1. 12/31/22 2. 12/31/22 Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 105 at December 31, 2022. CRANE COMPANY Balance Sheet (Partial) Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 96 at De ember 31, 2022. CRANE COMPANY Balance Sheet (Partial) $ $