Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $69,000 for $74,378 on January 1, 2021. The market interest ratefor bonds of similar risk and maturity is 5%. Interest is paid semiannually on June 30 and December 31Required:1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event,select "No Journal Entry Required" in the first account field. Round your intermediate computations and final answers to thenearest whole dollar amount.)View transaction listJournal entry worksheet21Record the bond issue.Note: Enter debits before credits.DateGeneral JournalDebitCreditJanuary 01, 2021

Question
Asked Oct 16, 2019

4. Chapter 9 Homework

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $69,000 for $74,378 on January 1, 2021. The market interest rate
for bonds of similar risk and maturity is 5%. Interest is paid semiannually on June 30 and December 31
Required:
1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field. Round your intermediate computations and final answers to the
nearest whole dollar amount.)
View transaction list
Journal entry worksheet
2
1
Record the bond issue.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 01, 2021
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Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $69,000 for $74,378 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually on June 30 and December 31 Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate computations and final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 2 1 Record the bond issue. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021

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Expert Answer

Step 1

Prepare journal entry to record...

Debit (S) Credit ($)
74,378
Account title and Explanation
Date
Cash
Bonds payable
Premium on bonds payable (S74,378-S69,000)
(To record the issuance of bonds at premium)
January 1,2021
69,000
5,378
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Debit (S) Credit ($) 74,378 Account title and Explanation Date Cash Bonds payable Premium on bonds payable (S74,378-S69,000) (To record the issuance of bonds at premium) January 1,2021 69,000 5,378

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