On January 1, 2018, Splash City issues $440,000 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 10%, the bonds will issue at $402,252.

Required: 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.)

Journal Entry Worksheet

Record the bond issue.

Record the first semiannual interest payment.

Record the second semiannual interest payment.

Date

General Journal

Debit

Credit

January 01, 2018

*Enter debits before credits