On January 1, 2018, Loop Raceway issued 520 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $506,090. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Prepare a bond amortization schedule.

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1. Record the issuance of 520 bonds at face value of $1,000 each for $506,090

2. Record the interest payment on December 31, 2018

3. Record the interest payment on December 31, 2019

4. Record the interest and face value payment on December 31, 2020

5. Record the retirement of the bonds at a quoted price of 98, assuming the bonds are retired on January 1, 2020

Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 5 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 01/01/18 12/31/18 12/31/19 12/31/20 Req 2 to 5 ROO its before credits. General Journal Debit Credit try Clear entry View general journal