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Everything I have filled in is correct, just need help with the simplified-effective interest bond journal entries. On January 1, 2018, Surreal Manufacturing issued 700

Everything I have filled in is correct, just need help with the simplified-effective interest bond journal entries. image text in transcribed
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image text in transcribed
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On January 1, 2018, Surreal Manufacturing issued 700 bonds, each with a face value of $1,000, a stated interest rate of 3 percent pald 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 $680,577. Surreal uses the simplified effective interest bond amortization method and adjusts for any rounding errors when recording interest in the finallyear. 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 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. (Do not round intermediate calculations. Round your answers to the nearest dollar. Make sure that the Carrying value equals to face value of the bond in the last period. Interest expense in the period should be calculated as Cash Interest (+)/(-) Reduction in Bonds Payable, Net.) Beginning of Year Changes During the Period End of Year Period Interest Expense Cash Paid Cash Paid Increase in Bonds Payable, Net Bonds Payable, Net Bonds Payable, Net IS 680,577 686,800 693,272 S $ 01/01/18 - 12/31/18 01/01/19 - 12/31/19 01/01/20 - 12/31/20 $ 27,223 27.472 27.7307 21,000 21,000 21,000 6,223 6,472 6,730 686.800 693,272 700,002 Reg 2 to 5 > View transaction St Journal entry worksheet oooo Record the issuance of 700 bonds at face value of $1,000 each for $680,577. I want se Note: Enter debits before credits e General Journal Credit Date Jan 01, 2018 Debit 680,577 Cash Record entry Clear entry View general Journal

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