Pizza Pier issues 9%, 10-year bonds with a face amount of $70,000 for $65,639 on January 1,

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Question:

Pizza Pier issues 9%, 10-year bonds with a face amount of $70,000 for $65,639 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 10%. Interest is paid semiannually on June 30 and December 31.

1. Record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Record the first interest payment on June 30, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest dollar amount.)