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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 1,2021, Surreal Manufacturing Issued 600 bonds, each wilh 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 $583,352. Surreal uses the simplified effective-Interest bond amortization method and
adjusts for any rounding errors when recording Interest In the final year.
Requlred:
Prepare a bond amortization schedule.
2-5. Prepare the Journal entrles 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 retlred on January 1,2023, 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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