7 On January 1, 2017, Surreal Manufacturing Issued 680 bonds, each with a face value of $1,000, a stated interest rate of 3.50 percent pald annually on December 31, and a maturity date of December 31, 2019. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $670,567. Surreal uses the effective-Interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar) 25 points Changes During the Period Ending Bond Liability Balance 01:55 Parlad Ended Interest Expense Cash Pald Discount Amortized Bonds Payable Discount on Bonds Payable Carrying Value 01/01/17 12/31/17 12/31/18 12/31/19 2. Prepare the journal entry to record the bond issue. (If no entry is required for a transaction/event, select "Na journal entry required" in the first account field.) View transaction list 7 2. Prepare the journal entry to record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list 25 points Journal entry worksheet 01:52:02 Record the issuance of bond. Note: Enter debits before credits General Journal Debit Credit + Jan 01, 2017 Record entry Clear entry Vlow general Journal 3. Prepare the journal entries to record the interest payments on December 31, 2017, and 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet