Question: Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $59,000 for $67,070 on January 1, 2018. The market interest rate for bonds of

Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of

$59,000 for $67,070 on January 1, 2018. The market interest rate for

bonds of similar risk and maturity is 4%. Interest is paid semiannually

Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $59,000 for $67,070 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 4%. Interest is paid semiannually on June 30 and December 31. 1. & 2. Record the bond issue and 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.) Journal entry worksheet 1 2 > Record the bond issue. Note: Enter debits before credits. Debit Credit Date General Journal January 01, 2018 Cash Premium on Bonds Payable Bonds payable dant Toar antin nrol inual 2 > Record the first interest payment. Note: Enter debits before credits. Debit Credit Date June 30, 2018 General Journal Interest expense Premium on Bonds Payable Cash Record entry Clear entry View general journal

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