On January 1, 2009, 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, 2011. 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.

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, 2009 and 2010.
4. Give the journal entry to record the interest and face value payment on December 31, 2011.
5. Assume the bonds are retired on January 1,2011 , at a price of 98 . Give the journal entries to record the bond retirement.