i need help fixing this question. thank you !
10-Homework Assignment i Saved Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. On January 1, 2018, Surreal Manufacturing issued 620 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 $602.797. 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 103. O Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2 to 5 Reg 1 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 103. (If no entry is required for a transaction/event, select No Journal Entr Required in the first account field. Round your answers to the nearest whole dollar amount.) Show lesIA Credit Debit General Journal Date No e02 707 17203 Cash Jan 0 2018 Discount on Bonds Payable 420.000 Bonds Payable Shows what is correct or incorrect for the work you have completed so far. It does not indicate com Req 1 Req 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 Ended Interest Discount Amortized Bonds Discount on Carrying Value Cash Paid Expense Payable Bonds Payable 01/01/18 620,000 17,203 602,797 12/31/18 24,112 18,600 5,512 620,000 11,691 608,309 12/31/19 24,332 18,600 5,732 620,000 5,959 614,041 12/31/20 24,562 18,600 5,962 620,000 620,000 Req 2 to 5 > osearch Show leas A Date General Jouma Debit Credit Jan 01, 2018 Cash 602,707 Discount on Bonds Payable 17,203 Bonds Payable 620,000 Dec 31, 2018 Interest Expense 24,112 Discount on Bonds Payable 11,601 O Cash 18,600 Dec 31, 2019 Interest Expense 24,332 O Discount on Baonds Paysble 5,050 Cash 18,600 Dec 31, 2020 Interest Expense 24,582 O Bonds Payable 820.000 Cash 18,600 Discount on Bonds Paysble Jan 01, 2020 Bonds Payable 820.000 Loss on Bond Retirement 18.600 Discount on Bonds Payable Cash 838,600
