1) Prepare bond amortization schedule.

2)Record Journal entries

Jan 1, 2015- Record issuance of 630 bonds at a face value $1000 each for $612519

Dec 31, 2015- Record interest payment.

Dec 31, 2016- Record interest payment.

Dec 31, 2017- Record the interest and face value payment.

Jan 1,2017- Record the retirement of bonds at a quoted price of $101, assuming bonds are retired on Jan 1, 2017.

On January 1, 2015, Surreal Manufacturing issued 630 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, 2017. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $612,519. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year Required Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar Make sure that the Carrying value equals face value of the bond in the last period. Interest expense in the last period will result in the amount in Discount Amortized equaling Discount on Bonds Payable.) Changes During the Period Ending Bond Liability Balances Interest Expense Diount Bonds Payable Bonds Payable Discount on Carrying Value Period Cash Paid Ended 01/01/15 12/31/15 12/31/16 12/31/17 Amortized