On January 1, 2018, Surreal Manufacturing issued 520 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, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $505,572. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1. 1. Prepare a bond amortization schedule.

2. 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 101.

qualing Discount on Bonds Payable.)

	Changes During the Period			Ending Bond Liability Balances
Period Ended	Interest Expense	Cash Paid	Discount Amortized	Bonds Payable	Discount on Bonds Payable	Carrying Value
01/01/18				$520,000	$14,428	$505,572
12/31/18	20,223	15,600	4,623	520,000		520,000
12/31/19		15,600	(15,600)	520,000		520,000
12/31/20		15,600	(15,600)	520,000	0	520,000

• THE NUMBERS SHOWN ARE CORRECT I CANT FIGURE OUT THE REST OF THEM HELLPP