On January 1, 2015, 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 $322,316.

Complete the first rows of an amortization table. Date, Interest Expense, Decrease in Carrying Value, Carrying Value.

2- Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.