On January 1, 2015, Loop Raceway issued 570 bonds, each with a face value of $1,000, a stated interest rate of 6% paid annually on December 31, and a maturity date of December 31, 2017. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $555,042. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1.

Prepare a bond amortization schedule.

	Changes During the Period			Ending Bond Liability Balances
Period Ended	Cash Paid	Discount Amortized	Interest Expense	Bonds Payable	Discount on Bonds Payable	Carrying Value
01/01/15						$0
12/31/15	34,200	4,986	39,186			0
12/31/16	34,200	4,986	39,186			0
12/31/17	34,200	4,986	39,186			0