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Posted on Jul 23, 2024

On January 1, 2024, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31

On January 1, 2024, 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. .

Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024.

Journal Entry

Janurary 1st 2024

June 30th 2024

December 31st 2024

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