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On January $1,2024,$ Splash City issues $$390,000$ of $7\%$ bonds, due in $10$ years, with interest payable semiannually on June $30$ and December $31$ each year.

Assuming the market interest rate on the issue date is $8\%,$ the bonds will issue at $$363,500.$

How will the bond issuance on January $1,2024,$ affect the financial statements?

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Req $1$

How will the bond issuance on January $1,2024,$ affect the financial statements?

Note: Amounts to be deducted should be indicated by a minus sign.

$\backslash$table$[[$Balance Sheet,Income Statement$],[$Assets$,$Liabilities,Stockholders' Equity,Revenues,Expenses,Net Income$],[\backslash$table$[[$Common$],[$Stock$]],\backslash$table$[[$Retained$],[$Earnings$]]],[$Cash$,$$$,363,500,$Discount on Bonds Payable,$$,26,500,],[,,,,,,,2,,,],[,,,,,,,,,,]]$