What is the first interest payment on december

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Reference no: EM131521685

Question: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $55,786 on January 1, 2012. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid annually on December 31.

1. Record the bond issue.

2. Record the first interest payment on December 31, 2012. (Interest expense is 7% times the carrying value of $55,786.)

Reference no: EM131521685

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