cho Required information [The following information applies to the questions displayed below.) On January 1, 2021, Splash City issues $470,000 of 7% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $423,487. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $425,566 on December 31, 2022. (Round Interest expense to nearest whole dollar.) Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value $ 423,487 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Required information (The following information applies to the questions displayed below.) On January 1, 2021, Splash City issues $470,000 of 7% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $423,487. 2. If the market interest rate drops to 5% on December 31, 2022, it will cost $580,714 to retire the bonds. Record the retirement of the bonds on December 31, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate calculations to the nearest whole dollar amount.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 December 31, 2022 Bonds Payable 470,000 Loss Cash Discount on Bonds Payable