Questions -
Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $53,000 for $46,875 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
Record the bond issue and first interest payment on June 30, 2018.
1) January 1 ,2018
2) June 30,2018
Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $50,000 for $56,839 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 4%. Interest is paid semiannually on June 30 and December 31.
Record the bond issue and first interest payment on June 30, 2018
1) January 1 ,2018
2) June 30,2018