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00 On January 1, 2021, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid
00 On January 1, 2021, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $583,352. Surreal uses the simplified effective interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. 0.77 points Required: 8 01:28:31 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 101. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 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 101. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Round your answers to the nearest whole dollar.) Show less No Credit 1 Date General Journal January 01, 2021 Cash Discount on Bonds Payable Bonds Payable, Net Debit 583,352 16,648 x x x 600,000 X 2 23,334 December 31, 202 Interest Expense Cash 18,000 5,334 Discount on Bonds Payable % 3 23,547 December 31, 202 Interest Expense Cash Discount on Bonds Payable 18,000 5,547 X 4 23,766 600,000 December 31, 202 Interest Expense Bonds Payable, Net Cash Discount on Bonds Payable 618,000 5,766 X X OOO OOO 5 600,000 X 11,766 January 01, 2023 Bonds Payable, Net Loss on Bond Retirement Cash Discount on Bonds Payable 606,000 5,766 x
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