Question: On January 1 , 2 0 2 6 , Splash City issues $ 4 4 0 , 0 0 0 of 9 %

On January 1,2026, Splash City issues \$440,000 of 9\% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The bonds issue at \$440,000.
Required:
1. How will the bond issuance on January 1,2026, affect the financial statements?
2-a. How will the first payment on June 30,2026, affect the financial statements?
2-b. How will the second payment on December 31,2026, affect the financial statements?
Complete this question by entering your answers in the tabs below.
How will the second payment on December 31,2026, affect the financial statements?
Note: Amounts to be deducted should be indicated by a minus sign. On January 1,2026, Splash City issues \$440,000 of \(9\%\) bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The bonds issue at \$440,000.
Required:
1. How will the bond issuance on January 1,2026, affect the financial statements?
2-a. How will the first payment on June 30,2026, affect the financial statements?
2-b. How will the second payment on December 31,2026, affect the financial statements?
Complete this question by entering your answers in the tabs below.
How will the first payment on June 30,2026, affect the financial statements?
Note: Amounts to be deducted should be indicated by a minus sign.
On January 1 , 2 0 2 6 , Splash City issues \ $ 4

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