Issued Bonds at a Discount (Effective Interest) 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%. Required: Hide Prepare the journal entry for December 31, 2014 and 2015. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest whole dollar. Journal Account and Explanation Debit Credit Dec. 31, 2014 Dec. 31, 2015
Issued Bonds at a Discount (Effective Interest) 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%. Required: Hide Prepare the journal entry for December 31, 2014 and 2015. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest whole dollar. Journal Account and Explanation Debit Credit Dec. 31, 2014 Dec. 31, 2015
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Issued Bonds at a Discount (Effective Interest)
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%.
Required:
Prepare the
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