Exercise 9-9A Record bonds issued at a premium and related semiannual interest (LO9-5)

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On January 1, 2021, Splash City issues $300,000 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 6%, the bonds will issue at $322,317.

Exercise 9-9A Part 2

2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.