On January 1, 2021. White Water issues $600,000 of 7% bonds, due in 10 years with interest payable annually on December 31 each year
Assuming the market interest rate on the issue date is 8%, the bonds will issue at $559740, 2. Record the bond issue on January 1, 2021, and the first two interest payments on December 31, 2021, and December 31, 2022