Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $64,008 on January 1,
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Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $64,008 on January 1, 2024. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid annually on December 31.
1. Record the bond issue on January 1, 2024.
2. Record the first interest payment on December 31, 2024.
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