Question: On May 2, 2021, Luka Modric issues 6-year, $1,000,000, 8% bonds to finance the acquisition of a restaurant in Pula, Croatia. The bonds are

On May 2, 2021, Luka Modric issues 6-year, $1,000,000, 8% bonds to

On May 2, 2021, Luka Modric issues 6-year, $1,000,000, 8% bonds to finance the acquisition of a restaurant in Pula, Croatia. The bonds are issued at a price of $1,048,317, for an effective rate of 7%. The bonds pay interest semi-annually, on November 1 and May 1 of each year. Modric's fiscal year-end is on December 31. Prepare all necessary journal entries in relation to these bonds starting on the date of issuance, through May 2, 2022. Clearly mark the date for each journal entry.

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