On January 1, 2015, Splash City issues $390,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.

Required:

Assuming the market interest rate on the issue date is 7%, the bonds will issue at $390,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the issuance of the bond -

Record the first semiannual interest payment -

Record the second semiannual interest payment -

B)

On January 1, 2015, Splash City issues $380,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.

Assuming the market interest rate on the issue date is 7%, the bonds will issue at $414,945.

1/1/15 - Cash Paid - Interest Expense - Decrease in Carrying Value - Carrying Value -

6/30/15 - Cash Paid - Interest Expense - Decrease in Carrying Value - Carrying Value -

12/31/15 - Cash Paid - Interest Expense - Decrease in Carrying Value - Carrying Value -

C) Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1/1/15 On January 1, 2015, Splash City issues $380,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $414,945. Record the issuance of the bond.

6/30/15 On January 1, 2015, Splash City issues $380,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $414,945. Record the first semiannual interest payment.

12/31/15 On January 1, 2015, Splash City issues $380,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $414,945. Record the second semiannual interest payment.