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Crafty Corporation issued $475,000 of 5%, 7-year bonds on December 31, 2013, for $448,484. Interest is paid annually on December 31. The market rate of

Crafty Corporation issued $475,000 of 5%, 7-year bonds on December 31, 2013, for $448,484. Interest is paid annually on December 31. The market rate of interest is 6%.

Prepare the journal entry for December 31, 2014 and 2015.

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