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On January 1, 2012, Loop Raceway issued 600 bonds, each with a face value of $1,000, a stated interest rate of 5% paid annually on

On January 1, 2012, Loop Raceway issued 600 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, 2014. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $583,950. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year

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