Question: Can you help me with this question step by step? On January 1, 2024, Splash City issues $390,000 of 7% bonds, due in 10 years,
Can you help me with this question step by step?
On January 1, 2024, Splash City issues $390,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 6%, the bonds will issue at $419,013.
Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (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.)
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | January 01, 2024 | Cash | ||
| Bonds Payable | ||||
| Premium on Bonds Payable | ||||
| 2 | June 30, 2024 | Interest Expense | ||
| Premium on Bonds Payable | ||||
| Cash | ||||
| 3 | December 31, 2024 | Interest Expense | ||
| Premium on Bonds Payable | ||||
| Cash |
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