On January 1, 2015, Splash City issues $310,000 of 9% bonds, due in 20 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 $340,679.

1.) Complete the first three rows of an amortization table

Date Interest Expense Decrease in Carrying Value Carrying Value

6/30/15 ? ? ?

12/31/15 ? ? ?

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