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Required information Exercise 9-17A Record the early retirement of bonds issued at a premium (LO9-6) [The following information applies to the questions displayed below.] On
Required information Exercise 9-17A Record the early retirement of bonds issued at a premium (LO9-6) [The following information applies to the questions displayed below.] On January 1, 2021, White Water issues $500,000 of 6% 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 5% and the bonds issued at $562,757. Exercise 9-17A Part 1 Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $556,810 on December 31, 2023. (Round your interest expense to the nearest whole dollar.) Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 Exercise 9-17A Part 2 2. If the market interest rate increases to 7% on December 31, 2023, it will cost $450,748 to retire the bonds. Record the retirement of the bonds on December 31, 2023. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 Record the retirement of the bonds. Note: Enter debits before credits. Date December 31, 2023 General Journal Debit Credit Record entry Clear entry View general journal >
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