1

art 1: Issuance of Bond (25 pts) The Free Group issues $100,000 of 6% bonds on January 1, 2021 for $107,795. The bends will m December 31, 2030 (10 years). The market yield for bends of similar risk and maturity is 5%. 1 paid semiannually on July 1 and January 1. a. Free Group has a calendar year-end and issues financial statements as of December 3L. Prepare the journal entry to record the issuance of the bonds on 1/1/2021 and other joumal ent required in 2021 for interest related to this bond issuance prior to issuing financial statements