Question: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $64,677 on January 1, 2018. The market interest rate for bonds of

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $64,677 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually on June 30 and December 31.

1. & 2. Record the bond issue and first interest payment on June 30, 2018

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