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Required information Exercise 9-16A Record the early retirement of bonds issued at a discount (LO9-6) (The following information applies to the questions displayed below.) On
Required information Exercise 9-16A Record the early retirement of bonds issued at a discount (LO9-6) (The following information applies to the questions displayed below.) 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.) Cash Paid Interest Expense Increase in Carrying Value Carrying Value $ 349,051 349,558 350.088 $ Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 507 $ 15,707 15,730 530 $ 15,200 15,200 15,200 15,200 351,221 Required information Exercise 9-16A Record the early retirement of bonds issued at a discount (LO9-6) [The following information applies to the questions displayed below.) 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.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 December 31, 2022 Cash Discount on Bonds Payable Bonds Payable
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