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Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $68,000 for $60,200 on January 1, 2021. The market interest rate for bonds of

Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $68,000 for $60,200 on January 1, 2021. The market interest rate for 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

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