Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
On January 1, 2015, 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 interst rate on the issue date is 10%,the bonds will issue at $457,102. Record the issuance of the bond.