Crafton Corporation Is Planning to Issue 5-Year, 8%, Semiannual Interest

question 36

Essay

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.

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Definitions:

Chosen People

A term traditionally used in a religious context to describe a group of people selected by a deity for a particular purpose; often associated with the Jewish people in the Hebrew Bible.

Moses

A key figure in the Abrahamic religions, traditionally credited with leading the Israelites out of Egypt and receiving the Ten Commandments from God.

Book of Revelation

The final book of the New Testament, also known as the Apocalypse, revealing a series of prophetic visions and the end times.

Nat Turner

An African-American slave who led a significant slave rebellion in Virginia in 1831, challenging the institution of slavery and its moral and economic foundations.