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The following information applies to the questions displayed below On January 1, 2018, Splash City issues $400,000 of 8% bonds, due in 15 years, with
The following information applies to the questions displayed below On January 1, 2018, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $367,422. value: 1.17 points Required 1. Complete the first three rows of an amortization table. Date Cash Paid Interest Increase in Expense Increase in Carrying Carrying Value Value 367 422 6/30/18 16,000 12/31/18 16,000 2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2016, and December 31, 2018 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transactixn list Journal entry worksheet Record the bond issue. Note: Enter debits before credits Date DebitCredit January 01, 2018 Record entry Clear entry View general journal View transaction list Journal entry worksheet 2 Record the first semiannual interest payment. Note: Enter debits before credits Date General Journal Debit Credit June 30, 2018 Clear entry Record entry View general journal View transaction list Journal entry worksheet Record the second semiannual interest payment. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal
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