Reference no: EM131521691
Question: 1. Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $60,000 on January 1, 2012. 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.
2. Record the first interest payment on June 30, 2012.
3. Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $55,736 on January 1, 2012. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
4. Record the bond issue.
5. Record the first interest payment on June 30, 2012.
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