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Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $400,000 of 8% bonds, due in 15
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $400,000 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 $367,422. Required: . Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2022. (Round nterest expense to nearest whole dollar.) Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $400,000 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 $367,422. 2. If the market interest rate drops to 6% on December 31,2022 , it will cost $471,507 to retire the bonds. Record the etirement of the bonds on December 31, 2022. (If no entry is required for a particular transaction/event, select "No Jour Entry Required" in the first account field. Round your intermediate calculations to the nearest whole dollar amount.)
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