Surf's Up is a manufacturer of surfing supplies and training equipment. On January 1, 2021, Surf's Up issues 6%, 10-year bonds with a face amount of $58,000 for $58,000 to finance its new warehouse. 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. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Journal entry worksheet

• Record the bond issue on January 1, 2021.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2021

Journal entry worksheet

• Record the first interest payment on December 31, 2021.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2021