On January $1,2021,$ Loop Raceway issued $700$ bonds, each with a face value of $$1,000,$ a stated interest rate of $6$ percent paid annually on December $31,$ and a maturity date of December $31,2023.$ On the issue date, the market interest rate was $7$ percent, so the total proceeds from the bond issue were $$681,631.$ Loop uses the straight$-$line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

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 early on January $1,2023$ instead of at their maturity date of $\frac{12}{31}\frac{?}{2023},$ record the entry to retire the bonds early assuming a price of $97.$

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ to $5$

Prepare a bond amortization schedule.

$\backslash$table$[[\backslash$table$[[$Period$],[$Ended$]],$Changes During the Period,,Ending Bond Liability Balances$],[\backslash$table$[[$Cash$],[$Paid$]],\backslash$table$[[$Discount$],[$Amortized$]],\backslash$table$[[$Interest$],[$Expense$]],,\backslash$table$[[$Bonds$],[$Payable$]],\backslash$table$[[$Discount on$],[$Bonds$],[$Payable$]],,],[01/01/21,,,,,,,$$$,0],[\frac{12}{31}\frac{?}{21},,,$$$,0,,,,0],[\frac{12}{31}\frac{?}{22},,,,0,,,,0],[\frac{12}{31}\frac{?}{23},,,,0,,,,0]]$