Required information

Exercise $9-19($Static$)$ Record the early retirement of bonds issued at a discount $($LO$9-6)$

Skip to question

$[$The following information applies to the questions displayed below.$]$

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.$

Exercise $9-19($Static$)$ Part $2$

$2.$ 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 $31,2025.($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Round your final answers to the nearest whole dollar.$)$Required information

Exercise $9-19($Static$)$ Record the early retirement of bonds issued at a discount $($LO$9-6)$

$[$The following information applies to the questions displayed below.$]$

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.$

Exercise $9-19($Static$)$ Part $2$

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 $31,2025.($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the

first account field. Round your final answers to the nearest whole dollar.$)$

Journal entry worksheet

$1$

Record the retirement of the bonds.

Note: Enter debits before credits.