On January 1, 2013, Loop de Loop Raceway issued 610 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $593,992. Loop de Loop uses the straight-line bond amortization method. Required: 1. Prepare a bond amortization schedule. Changes During the Period Period Ended Ending Bond Liability Balances Discount on Bonds Bonds Carrying Value Payable Payable Discount Amortized Cash Paid Interest Expense 01/01/13 12/31/13 12/31/14 12/31/15 2. Prepare the journal entry to record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of bond. 3. Prepare the journal entries to record the interest payments on December 31, 2013 and 2014. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the interest payments on December 31, 2013. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2013 Record entry Clear entry View general journal 4. Prepare the journal entry to record the interest and face value payment on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the interest and face value payment on December 31, 2015. 5. Assume the bonds are retired on January 1, 2015, at a price of 98. Give the journal entries to record the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the bond retirement. Note: Enter debits before credits. Date General Journal Debit Credit