On January 1, 2018, Splash City issues $360,000 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 8%, the bonds will issue at $335,537.

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

Date	Cash Paid	Interest Expense	Increase in carrying value	carrying value
1/1/18
6/30/18
12/31/18

2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)