On January 1, 2015, Surreal Manufacturing issued 680 bonds, each with 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, 2017. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $661,132. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. ARE THESE CORRECT?

On January 1, 2015, Surreal Manufacturing issued 680 bonds, each with 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, 2017. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $661,132. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year Required Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the Carrying value equals face value of the bond in the last period. Interest expense in the last period will result in the amount in Discount Amortized equaling Discount on Bonds Payable.) Changes During the Period Ending Bond Liability Balances Period Ended Interest Expense Discount Amortized Discount on Cash Paid Bonds Payable Carrying Value 01/01/15 12/31/15 12/31/16 12/31/17 26,445 26,687 26,939 20,400 20,400 20,400 6,045 6,287 6,539 680,000 S 680,000 680,000 680,000 Bonds PayableCarying 18,868 S 12,823 6,536 6,536 661,132 667,177 673,464 673,464