On January 1, 2021, Loop Raceway issued 640 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $623,205. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 97. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 5 Prepare a bond amortization schedule. Period Ended 01/01/21 12/31/21 12/31/22 12/31/23 Changes During the Period Discount Amortized Cash Paid Interest Expense < Req 1 Ending Bond Liability Balances Bonds Payable Discount on Bonds Payable Carrying Value Req 2 to 5 > On January 1, 2021, Loop Raceway issued 640 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $623,205. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 97. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 5 Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 97. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list X 1 Record the issuance of 640 bonds at face value of $1,000 each for $623,205. 2 Record the interest payment on December 31, 2021. 3 Record the interest payment on December 31, 2022. 4 Record the interest and face value payment on December 31, 2023. 5 Record the retirement of the bonds at a quoted price of 97, assuming the bonds are retired on January 1, 2023. Note : = journal entry has been entered Record entry Clear entry < Req 1 23,205. Debit Credit View general journal Req 2 to 5 >
