The following announcement appeared in the July 15, 2018, issue of theWall Avenue Financial Journal:

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This announcement is not an offer of securities for sale or an offer to buy securities.

New Issue, July 15, 2018$950,000,00

CRUDE OIL & GAS, INC.

5.75% Debentures Due July 1, 2033

Price 99.76%

Plus accrued interest if any from the date of issuance

Copies of the prospectus and the related prospectus supplement may be obtained from such

of the undersigned as may legally offer these securities under applicable securities laws.

Kermit Jeffers & Co. Inc. / Banks Bros. & Co. \ William Stork & Co.

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• What is the purpose of this announcement? Identify the purpose of a securities offering announcement.
• Why are the securities being priced at 99.76 percent? Explain why a security is priced at a value other than par.
• How will Crude Oil & Gas be recorded in this sale of securities?
• How will this impact its future interest expense entries?
• How would you describe the entry to record the sale of a security and its impact on future interest expense?