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Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $490,000 of 8% bonds, due in 15
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $490,000 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 $450,092. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $452,891 on December 31, 2022. (Round Interest expense to nearest whole dollar.) Date Cash Paid Interest Increase in Expense Carrying Value 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Carrying Value $ 450,092 450,745 451,430 19,600 $ 20,254 $ 19,600 20,284 654 684
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