Refer to the information for Crafty Corporation below. Crafty Corporation issued $475,000 of 5%, 7-year bonds on

Question:

Refer to the information for Crafty Corporation below.
Crafty Corporation issued $475,000 of 5%, 7-year bonds on January 1, 2020, for $448,484. Interest is paid annually on December 31. The market rate of interest is 6%.
Required:
Prepare the journal entry for December 31, 2020 and 2021.

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