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On January 1, 2018, White Water issues $440,000 of 7% bonds, due in 10 years, with...

On January 1, 2018, White Water issues $440,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year.

Assuming the market interest rate on the issue date is 6%, the bonds will issue at $472,382.

1. Complete the first three rows of an amortization table.

Date Cash PaidI Interest Expense Decrease in Carrying Value Carrying Value

1/1/18

12/31/18

12/31/19

2. Record the bond issue on January 1, 2018, and the first two interest payments on December 31, 2018, and December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

JAN 01/ 2018 1- Record the bond issue.

DEC 31/2018 2- Record the first annual interest payment.

DEC 31/2019 3- Record the second annual interest payment.

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