Check my work mode: This shows what is correct or incorrect for the work you have completed 30 On January 1, 2018, Surreal Manufacturing Issued 540 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, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $525,017. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2.5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102 Answer is not complete. Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 to 5 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 Period Interest Discount Bonds Cash Pald Discount on Ended Carrying Expense Amortized Payable Bonds Payable Value 01/01/18 540,000 14.983 525,017 12018 21.001 16.200 4.801 540,000 10,1833 529.817 12/31/19 21,193 16.200 4.993 540.000 5,190 534,810 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the Carrying value equals tace value of the bond in the last period. Interest expenso 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 Period Interest Discount Bonds Discount on Carrying Cash Pald Ended Expense Amortized Payable Bonds Payable Value 01/01/18 Is 540,000 14,983 $ 525,017 12/31/18 21,001 16,200 4,801 540,000 10,183 529,817 12/31/19 21,193 16.200 4,993 540,000 5,1903 534,810 12/31/20 21,390 16,200 5,190 540,000 0 540,000 Reg 2 to 5 > Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102. (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 amount.) Show less No Date General Journal Credit 1 Jan 01, 2018 Cash Discount on Bonds Payable Bonds Payable Debit 525,017 14.983 540,000 2 Dec 31, 2018 Interest Expense 21,001 * 4,800 Discount on Bonds Payable Cash 16,200 3 Dec 31, 2019 21,193 Interest Expense Discount on Bonds Payable Cash 4,992 16,200 Dec 31, 2020 21,192 Interest Expense Discount on Bonds Payable Cash 5,191 X 16,200 5 Jan 01, 2020 Interest Expense Impairment Loss Cash 21,390 1.080 55,080 X