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On January 1, 2018, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
Assuming the market interest rate on the issue date is 10%, the bonds will issue at $457,102.
1. Complete the first three rows of an amortization table.
1/1/18:
6/30/18
12/31/18
2. Record the bond issue on Jan. 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
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