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Question: 1. Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $64,676 on January 1, 2012. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually on June 30 and December 31.

1. Record the bond issue.

2. Record the first interest payment on June 30, 2012.

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

4. Record the bond issue.

5. Record the first interest payment on December 31, 2012.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92330413

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