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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. The market interest rate on the issue date is 10% and the bonds issued at $457,102.

If the market interest rate drops to 7% on December 31, 2025, it will cost $601,452 to retire the bonds. Record the retirement of the bonds on December 31, 2025.

Journal entry worksheet Record the retirement of the bonds. Note: Enter debits before credits

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