On January $1,2024,$ Splash City issues $$420,000$ of $7\%$ bonds, due in $10$ years, with interest payable semiannually on June $30$ and

December $31$ each year. The bonds issue at $$420,000.$

Required:

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

How will the first two semiannual interest payments on June $30,2024,$ and December $31,2024,$ affect the financial statements?

Complete this question by entering your answers in the tabs below.

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.