A company issues 7%, 9-year bonds with a face amount of $70,000for $65,567 on January 1, 2021.

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Question:

A company issues 7%, 9-year bonds with a face amount of $70,000for $65,567 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semi-annually on June 30 and December 31.
Required:
1. & 2. Record the bond issue and first interest payment on June 30, 2021.

(If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)