Crafton Corporation is planning to issue 5-year, 8%, semiannual interest bonds with a face value of $500,000.
Required: Prepare the necessary journal entry under each of the following assumptions.
a. The bonds are sold on issuance date at par.
b. The bonds are sold on issuance date at 97.
c. The bonds are sold on issuance date at 105.
Correct Answer:
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