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On January 1, 2017, Crane Corporation issued $630,000 of 9% bonds, due in 10 years. The...

On January 1, 2017, Crane Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds were issued for $590,745, and pay interest each July 1 and January 1. Crane uses the effective-interest method. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%.

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