Question: Pretzelmania, Inc., Issues 7%, 15-year bonds with a face amount of $64,000 for $70,216 on January 1, 2021. The market interest rate bonds of

Pretzelmania, Inc., Issues 7%, 15-year bonds with a face amount of $64,000

Pretzelmania, Inc., Issues 7%, 15-year bonds with a face amount of $64,000 for $70,216 on January 1, 2021. The market interest rate bonds of similar risk and maturity is 6%. Interest is paid annually on December 31. Required: 1. & 2. Record the bond issue and first interest payment on December 31, 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 complete but not entirely correct. No Date General Joumal Debit Credit 1 January 01, 2021 Cash 70,216 Premium on Bonds Payable 6,126 Bonds Payable 64,000 2 December 31, 202 Interest Expense 4,213 Premium on Bonds Payable 267 Cashi 4,480

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