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Crane Company purchased 70 Rinehart Company 6%, 10-year, $1,180 bonds on January 1, 2020, for $82,600. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Crane Company sold 40 of the bonds for $45,430.
Problem 1: Prepare the journal entries to record the transactions described above. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Financial Statement Analysis and Preparation
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