On January 1, 2018, Loop Raceway issued 610 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $593,992. 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. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 97. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 5 Prepare a bond amortization schedule. Ending Bond Liability Balances Changes During the Period Discount on Discount Amortized Carrying Value Period Ended Bonds Interest Expense Cash Bonds Payable Paid Payable C 01/01/18 S C 12/31/18 12/31/19 C 12/31/20 Req 2 to 5 Req 1 Next > Prev 4 of 6 Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 97. (If no entry is requlred for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 1 Record the issuance of 610 bonds at face value of $1,000 each for $593,992. Note: Enter debits before credits. General Journal Credit Debit Date Jan 01, 2018 View general journal Clear entry Record entry > Req 2 to 5 Req 1 Next> 4 of 6
Record the interest payment on December 31, 2018. Note: Enter debits before credits. General Journal Date Debit Credit Dec 31, 2018 View general journal Record entry Clear entry Reg 2 to 5 Req 1 en Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the inte value payment on no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at View transaction list Journal entry worksheet 2 4 5 Record the interest payment on December 31, 2019. Note: Enter debits before credits. Credit Debit General Journal Date Dec 31, 2019 View general journal Clear entry Record entry Reg 2 to 5 Reg 1 the bond Issue, the interest payments on December 31, 2018 and 2019, the interest and Prepare the journal value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet
