Hi could someone help me do what is wrong and explain me the debits and credits for the journal entries? Thanks!
On January 1, 2013, Surreal Manufacturing issued 790 bonds, each with a face value of $1.000, a stated interest rate of 3.50 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $779,041. Surreal uses the effective interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar.) Answer is not complete. Changes During the Period Period Ended Interest Expense Cash Paid Discount Amortized Ending Bond Liability Balances Discount Carrying on Bonds Payable Value Bonds Payable 01/01/13 12/31/13 12/31/14 12/31/15 31,161 31,301 31.447 27.650 27,650 27.650 (3,511) 3,651 3.797 790,000 790.000 790,000 790,000 (7,448) (3,797) 0 782,552 786,203 790,000 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.) Answer is complete but not entirely correct. No Date Credit Jan 01.2013 General Journal Cash Discount on bonds payable Bonds payable Debit 681,631 18,369 X 700,000 X 3. Prepare the journal entries to record the interest payments on December 31, 2013 and 2014. (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.) % Answer is not complete. No Date General Journal Debit Credit Dec 31, 2013 Interest expense 48,123 Discount on bonds payable Cash 6,123 42,000 4. Prepare the journal entry to record the interest and face value payment on December 31, 2015. (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.) > Answer is not complete. No Date Dec 31, 2015 Debit Credit General Journal Interest expense Bonds payable Discount on bonds payable Cash 5. Assume the bonds are retired on January 1, 2015, at a price of 101. Give the journal entry to record the bond retirement. (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.) Answer is not complete. No Debit Credit Date Dec 31, 2015 General Journal Bonds payable Loss on bond retirement Cash Discount on bonds payable