Question: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $52,000 for $48,348 on January 1, 2018. The market interest rate for bonds of

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $52,000 for $48,348 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid annually on December 31. 1. & 2. Record the bond issue and first interest payment on December 31, 2018.

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