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 issued

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. Modrics 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.

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