Crane Company issued $\backslash$$$500,000$ of $5-$year, $7\backslash \%$ bonds at $98$ on January $1,2027.$ The bonds pay interest annually.

$($a$1)$

Prepare the journal entry to record the issuance of the bonds. $($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at $103.($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Credit

Cash

Bonds Payable

Premium on Bonds Payable

Attempts: $1$ of $5$ used

$($b$2)$

Compute the total cost of borrowing for these bonds, assuming the bonds were issued at $103.$

Total cost of borrowing

$\backslash$$ Compute the total cost of borrowing for these bonds, assuming the bonds were issued at $103.$

Total cost of borrowing $\backslash$$