Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2022. (Round Interest expense to nearest whole dollar.)
Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2022. (Round Interest expense to nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required Information
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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
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
Record the retirement of the bonds.
Note: Enter debits before credits.
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Transcribed Image Text:2
of 2
ik
t
ces
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
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
Record the retirement of the bonds.
Note: Enter debits before credits.
Dato
Manambna 9 annal
General Journal
< Prev
8
12
of 13
Debit
#
in
Check my work
Credit
Next >
![as
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:
1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2022. (Round
Interest expense to nearest whole dollar.)
Date
01/01/2021
06/30/2021
12/31/2021
06/30/2022
12/31/2022
Cash Paid
Interest
Increase in
Exponse Carrying Value
Carrying
Value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71f24a5c-0e1a-4199-9979-19cafdbbbd91%2F6444c2fa-420a-4f5e-aa58-058500662b0c%2F53juw3l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:as
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:
1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2022. (Round
Interest expense to nearest whole dollar.)
Date
01/01/2021
06/30/2021
12/31/2021
06/30/2022
12/31/2022
Cash Paid
Interest
Increase in
Exponse Carrying Value
Carrying
Value
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