Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,

Question:

Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000
on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%.
Interest is paid semiannually on June 30 and December 31.
1. Record the bond issue.
2. Record the first interest payment on June 30, 2021.

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