On January 1, 2015, Loop Raceway issued 600 bonds, each with a face value of $ 1,000, a stated interest rate of 5 paid annually on December 31, and a maturity date of December 31, 2017 On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $ 583,95...

Req 1 Changes During the Period Ending Bond Liability Balances Period Ended A Cash Paid B Discount A ...

On January 1, 2015, Loop Raceway issued 600 bonds, each with a face value of $ 1,000,

Question:

On January 1, 2015, Loop Raceway issued 600 bonds, each with a of $ 1,000, a stated interest rate of 5% paid annually on December 31, and a date of December 31, 2017. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $ 583,950. 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. Give the journal entry to record the bond issue.
3. Give the journal entries to record the interest payments on December 31, 2015 and 2016.
4. Give the journal entry to record the interest and payment on December 31, 2017.
5. Assume the bonds are retired on January 1, 2017, at a price of 98. Give the journal entries to record the bond retirement. Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...