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On January $1,2024,$ 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.$

$2.$ If the market interest rate drops to $7\%$ on December $31,2025,$ it will cost $$412,092$ 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.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2025,,,]]$

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