On January 1, 2024, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest

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On January 1, 2024, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.


Required:
Assuming the market interest rate on the issue date is 8%, the bonds will issue at $549,482.
1. Complete the first three rows of an amortization schedule.
2. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024.

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Financial Accounting

ISBN: 9781260786521

6th Edition

Authors: David Spiceland

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