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Required information [The following information applies to the questions displayed below.] On January 1, 2024,...

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Accounting

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Required information [The following information applies to the questions displayed below.] On January 1, 2024, Splash City issues $390,000 of 7% bonds, due in 10 years, with interest payable semlannusily on June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $363,499. If the market interest rate drops to 5% on December 31,2025 , it will cost $440,915 to retire the bonds. Record the retirement of the onds on December 31, 2025. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the rst account field, Round your final answers to the nearest whole dollar.) Journal entry worksheet Required information [The following informotion applies to the questions displayed below.] 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. The market interest rate on the issue date is 8% and the bonds issued at $363,499. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $367,278 on December 31,2025 . (Round your final answers to nearest whole dollar.)

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