On January 1, 2015, White Water issues $510,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the bonds issued at $547,938.

Using an amortization schedule, show that the bonds have a carrying value of $538,805 on December 31, 2017

2.

If the market interest rate increases to 8% on December 31, 2017, it will cost $483,064 to retire the bonds. Record the retirement of the bonds on December 31, 2017. Journal Entry Worksheet On January 1, 2015, White Water issues $510,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the bonds issued at $547,938. If the market interest rate increases to 8% on December 31, 2017, it will cost $483,064 to retire the bonds. Record the retirement of the bonds on December 31, 2017.