Question: Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $53,000 for $46,875 on January 1, 2021. The market interest rate for bonds of

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

Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $53,000 for $46,875 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually 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. Round your intermediate computations and final answers to the nearest whole dollar amount.) Answer is not complete. Credit Debit General Journal Date No 46,875 January 01, 2021 Cash 6,125 Discount on Bonds Payable 53,000 Bonds Payable 1,406 Interest Expense June 30, 2021 2 Cash Discount on Bonds Payable

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