Answer Happy

d CHE Required information The following information applies to the questions displayed below) On January 1, 2024, Splash City issues $480,000 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 $447,383 Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $452,034 on December 31, 2025, (Round your final enswers to nearest whole dollar) Date 01/01/20024 06/30/2024 12/31/2024 06/30/2005 12/31/2025 Cash Paid interest Expense Change in Carrying Value Carrying Value
On January 1, 2024, Splash City issues $480,000 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 $447,383. 2. If the market interest rate drops to 7% on December 31, 2025, it will cost $480,000 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.) View transaction list Journal entry worksheet Record the retirement of the bonds. Note: Enter debits before crests. Date December 31, 2025 General Journal Debit Credit