Analysis Case 14-4 Issuance of bonds LO14-2 The following appeared in the October 15, 2018, issue of the Financial Smarts Journal This announcement is not an offer of securities for sale or an offer to buy securities New Issue October 15, 2018 $750,000,000 CRAFT FOODS, INC 775% Debentures Due October 1, 2028 Price 99.57% plus accrued interest if any from date of issuance Copies of the prospectus and the related prospectus supplement may be obtained from such of the undersigned as may logally offer these securities under applicable securities laws. Keegan Morgan &Co. Inc Coldwell Bros.&Co. Robert Stacks & Co Sherwin-William & Co Required 1. Explain what is being described by the announcement. 2. Can you think of a paychological reason for the securities to be priced as they are? 3. What are the accounting considerations for Craft Foods, Inc.? Deseribe how Craft recorded the sale