Need help understanding Bonds and amortization

must create journal entries

PA10-7 (Algo) (Supplement 10B) Recording Bond Issue, Interest Payments (Effective-Interest Amortization), and Early Bond Retirement [LO 10-S2] On January 1, 2021, Surreal Manufacturing issued 590 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 31,2023 . On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $573,629. 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 31,2021 and 2022 , the interest and face value payment on December 31,2023 and the bond retirement. Assume the bonds are retired on January 1,2023 , at a price of 103. Complete this question by entering your answers in the tabs below. 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.) Prepare the journal entries to record the bond issue, the interest payments on December 31,2021 and 2022 , the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 103 . (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.) 1 Record the issuance of 590 bonds at face value of $1,000 each for $573,629. 2 Record the interest payment on December 31, 2021. 3 Record the interest payment on December 31, 2022. 4 Record the interest and face value payment on December 31,2023. 5 Record the retirement of the bonds at a quoted price of 103, assuming the bonds are retired on January 1, 2023. Note : = journal entry has been entered