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 December 31. The market rate of interest is 6%.
Required:
Prepare the journal entry for December 31, 2022 and 2023.