Required information (The following information applies to the questions displayed below) On January 1, 2021. Splash City Issues $360,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $335,537. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $339,026 on December 31, 2022 (Round Interest expense to nearest whole dollar) Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 06/30/2021 12/31/2021 08/30/2022 12/31/2022 0 Required information [The following information applies to the questions displayed below) On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $335,537 2. If the market interest rate drops to 5% on December 31, 2022, it will cost $406,998 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 Journal entry worksheet