On January $1,2021,$ Loop Raceway issued $500$ bonds, each with a face value of $$1,000,$ a stated interest rate of $7$ percent paid annually on December $31,$ and a maturity date of December $31,2023.$ On the issue date, the market interest rate was $8$ percent, so the total proceeds from the bond issue were $$487,099.$ Loop uses the straight$-$line 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 early on January $1,2023$ instead of at their maturity date of $12/31/2023,$ record the entry to retire the bonds early assuming a price of $99.$