On January 1,2021 , Splash City issues $380,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $349,051. Exercise 9-16A Part 1 Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $351,221 on December 31,2022 , (Round Interest expense to nearest whole dollar.) On January 1,2021 , Splash City issues $380,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $349,051. Exercise 9-16A Part 2 2. If the market interest rate drops to 7% on December 31,2022 , it will cost $412,092 to retire the bonds, Record the retirement of the bonds on December 31, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate calculations to the nearest whole dollar amount.) Journal entry worksheet