On January $1,2024,$ Splash City issues $$470,000$ of $7\%$ bonds, due in $20$ 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 $$423,487.$

If the market interest rate drops to $5\%$ on December $31,2025,$ it will cost $$580,714$ to retire the bonds. Record the retirement of the

ponds on December $31,2025.($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the

irst account field. Round your final answers to the nearest whole dollar.$)$

Journal entry worksheet

$1$

Record the retirement of the bonds.

Note: Enter debits before credits.