On January 1, 2018, Splash City issues $390,000 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 $363,500.

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.)

Journal entry worksheet

• Record the bond issue.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2018