Pretzelman a Inc. Issues 5%, 10-year bonds with a ace amount o $59,000 or $59,00

Question

Pretzelman a Inc. Issues 5%, 10-year bonds with a ace amount o $59,000 or $59,000 on January 1, 2018. The market interest rate or bonds of similar risk and matunty is 5%, Interest is paid semiannually on June 30 and December 31 1. & 2. Rooord the bond issue and first interest paymcnt on Junc 30, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.) view transaction list 1 Record the issuance of bond 2 Record the first interest payment. Credit Note : journal entry has been entered Record entry Clear entry hew general journal

Explanation / Answer

Jan-1-18 Cash 59000       Bonds payable 59000 June-30-18 Interest expense 1475 =59000*5%/2        Cash 1475

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