On January $1,2025,$ Crane Industries Inc. issued a $$98,000,7\%$ bond due in $10$ years with interest payable each January $1$ and July $1.$ The effective interest rate is $9\%.$

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Assuming instead that the effective interest rate is $5\%,$ determine the discount or premium on the bond. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.5,275.)$

on the bond $

Prepare the journal entry for the bond issue. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry. Round answer to $0$ decimal places, e$.$g$.125.)$

Account Titles and Explanation

Debit

Credit