On January 1, 2017, Surreal Manufacturing issued 680 bonds, each with a face value of $1,000, a stated interest rate of 3.50 percent paid annually on December 31, and a maturity date of December 31, 2019. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $670,567. Surreal uses the effective-interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar.) Changes During the Period Ending Bond Liability Balances Period Ended Interest Expense Cash Paid Discount Amortized Bonds Payable Discount on Bonds Payable 9,433 Carrying Value 01/01/17 12/31/17 3,023 26,823 26,944 27,069 680,000 740,000 X 740,000 X 740,000 X 23,800 23,800 23,800 6,410 3,267 12/31/18 670,567 673,590 676,733 680,000 3,144 12/31/19 3,266 0 3. Prepare the journal entries to record the interest payments on December 31, 2017, and 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) No Date General Journal Debit Credit 1 Dec 31, 2017 26,823 Interest expense Discount on bonds payable 3,023 23,800 Cash 2 Dec 31, 2018 4. Prepare the journal entry to record the interest and face value payment on December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) No Date General Journal Debit Credit 1 Dec 31, 2019 27,069 X Interest expense Discount on bonds payable x 3,266 23,800 X Cash *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 5. Assume the bonds are retired on January 1, 2019, at a price of 101. Give the journal entry to record the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) No Date General Journal Debit Credit 1 Jan 01, 2019 Bonds payable Loss on bond retirement Discount on bonds payable 680,000 3,946 3,266 Cash 680,680 X