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

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Accounting

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.

1. Using an amortization schedule, show that the bonds have a carrying value of $425,566 on December 31, 2025. (Round your final answers to nearest whole dollar.)

** 4 amortization rows

- 6/30/2024

-12/31/2024

-6/30/2025

-12/31/2025

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