The following appeared in the October 15, 2024, issue of the Financial Smarts Journal: Required: 1 Based
Question:
The following appeared in the October 15, 2024, issue of the Financial Smarts Journal:
Required:
1 Based on the information provided in the announcement, indicate whether the market rate of interest is higher or lower than 7.75% when the Craft Foods bonds were issued.
2 If debt issue costs were $75,000 and the bonds were issued on an interest payment date, what entry did Craft use to record the sale?
Transcribed Image Text:
This announcement is not an offer of securities for sale or an offer to buy securities. New Issue October 15, 2024 $750,000,000 CRAFT FOODS, INC. 7.75% Debentures Due October 1, 2034 Price 99.57% plus accrued interest if any from 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. Keegan Morgan & Co. Inc. Coldwell Bros. & Co. Robert Stacks & Co. Sherwin-William & Co.
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