On January 1, 2021, Splash City issues $390,000 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 8% and the bonds issued at $363,499. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $367,278 on December 31, 2022. (Round Interest expense to nearest whole dollar.) Date Cash Paid Interest Increase in Expense Carrying Value Carrying Value 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022