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On January 1, 2017, Surreal Manufacturing issued 740 bonds, each with a face value of $1,000, a stated interest rate of 3.50 percent paid annually

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On January 1, 2017, Surreal Manufacturing issued 740 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 $729,735. 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 Period Ended Ending Bond Liability Balances Bonds Discount on Bonds Payable Carrying Value Payable Interest Expense Discount Amortized Cash Paid 01/01/17 12/31/17 12/31/18 12/31/19 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 Record the issuance of bond. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2017 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.) View transaction list Journal entry worksheet Record the interest payments on December 31, 2017. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2017 Journal entry worksheet Record the interest payments on December 31, 2018. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2018 Record entry Clear entry View general journal 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.) View transaction list Journal entry worksheet Record the interest and face value payment on December 31, 2019. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2019 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.) View transaction list Journal entry worksheet Record the bond retirement. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2019

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