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On January 1 , 2 0 2 1 , Surreal Manufacturing Issued 6 0 0 bonds, each wilh a face value of $ 1 ,
On January Surreal Manufacturing Issued bonds, each wilh a face value of $ a stated Interest rate of percent paid
annually on December and a maturity date of December On the Issue date, the market Interest rate was percent, so the
total proceeds from the bond issue were $ Surreal uses the simplified effectiveInterest bond amortization method and
adjusts for any rounding errors when recording Interest In the final year.
Requlred:
Prepare a bond amortization schedule.
Prepare the Journal entrles to record the bond issue, the interest payments on December and the Interest and face
value payment on December and the bond retirement. Assume the bonds are retlred on January at a price of
Complete this question by entering your answers in the tabs below.
Prepare a bond amortization schedule. Do not round intermediate calculations. Round your answers to the nearest whole
dollar. Make sure that the Carrying value equals to face value of the bond in the last period. Interest expense in the last
period should be calculated as Cash Interest Increase in Bonds Payable, Net.
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