Refer to the information for Crafty Corporation on the previous page Crafty Corporation received $472,088 of cash upon issuance of 500 $1,000 par value bonds Each bond has a stated rate of 5 and will mature on December 31, 2026, 7 years after the issuance of the bonds Interest is paid annually on D...

Journal Date Account and Explanation Deb ...

Refer to the information for Crafty Corporation on the previous page. Crafty Corporation received $472,088 of cash

Question:

Refer to the information for Crafty on the previous page.
Crafty received $472,088 of cash upon issuance of 500 $1,000 bonds. Each bond has a stated rate of 5% and will mature on December 31, 2026, 7 years after the issuance of the bonds. Interest is paid annually on December 31. The market rate of interest is 6%.
Required:
Prepare the journal entry for December 31, 2022 and 2023.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...