Question: On January 1 , 2 0 2 4 , Splash City issues $ 4 2 0 , 0 0 0 of 7 % bonds, due

On January 1,2024, Splash City issues $420,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and
December 31 each year. The bonds issue at $420,000.
Required:
How will the bond issuance on January 1,2024, affect the financial statements?
How will the first two semiannual interest payments on June 30,2024, and December 31,2024, affect the financial statements?
Complete this question by entering your answers in the tabs below.
How will the bond issuance on January 1,2024, affect the financial statements?
Note: Amounts to be deducted should be indicated by a minus sign.
On January 1,2024, Splash City issues $420,000 of 7% bonds, due

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