Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1,
Question:
Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2024. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
1. Record the bond issue on January 1, 2024.
2. Record the first interest payment on June 30, 2024.
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On January 1 2024 Pretzelmania Inc would record the bond issue as follows Debit Cash 76...View the full answer
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