Pizza Pier issues 9%, 8-year bonds with a face amount of $70,000 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is also 9%. Interest is paid semiannually on June 30 and December 31.
1. Record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Record the first interest payment on June 30, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)