On January 1, 2018, Splash City issues $500,000 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 $457,102.

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

1/1/18:

6/30/18

12/31/18

2. Record the bond issue on Jan. 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.