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On January 1, 2009, Loop Raceway issued 780 bonds, each with a face value of $1,000, a stated interest rate of 5% paid annually on
On January 1, 2009, Loop Raceway issued 780 bonds, each with a face value of $1,000, a stated interest rate of 5% paid annually on December 31, and a maturity date of December 31, 2011 . On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $759,135. Loop uses the straight-line bond amortization method Required: 1. Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar amount Leave no cells blank be certain to enter "O" wherever required. Make sure that the unamortized premium or discount equals to '0' and the Carrying value equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (r)discount/()premium amortized.) Changes During the PeriodEnding Bond Liability Balances Period Ended 01/01/09 12/31/09 12/31/10 12/31/11 Cash Paid Discount mortized Bonds Discount on Carrying Interest Expense Payable Bonds Payable Value 2. Give the journal entry to record the bond issue (Round your answers to the nearest whole dollar amount. Omit the "$" sign in your response.) Date General Journal Debit Credit Jan 1 2009 (Click to select) Click to select) (Click to select)
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