On January 1, 2018, Surreal Manufacturing issued 540 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 5525,017. Surreat uses the effective-interest 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 hond 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 102 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the carrying value equals face value of the bond in the last period. Interest expense in the last period will result in the amount in Discount Amortized Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the Canying value equals face value of the bond in the last period. Interest expense in the last period will result in the amount in Discount Amortized equaling Discount on Bonds Payable.) Charges During the Period Ending Bond Liability Balances Period Interest Discount Bonds Discount on Cash Pald Carrying Ended Expense Amortized Payable Bonds Payable Value 01/01/18 S $40.000 $ 14,983 525,017 12/31/18 21,001 10,200 4.001 540,000 10,182 529,810 12/31/19 21,193 16,200 4,993 540,000 5,180 534,811 12/31/20 21,390 16,200 5.190 540,000 0 540,000 Reg 2 to 3 > 3 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. ts Reg 1 Reg 2 to 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 102. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account neid Round your answers to the nearest whole dollar amount.) Show less No Date General Journal Credit 1 Jan 01, 2018 Cash Discount on Bonds Payable Bonds Payable 03 Debit 525,017 14,983 540,000 2 Dec 31, 2018 Interest Expense 21,001 Discount on Bonds Payable Cash 4.801 16,200 3 Dec 31, 2019 Interest Expense 21,193 Discount on Bonds Payable Cash 4.990 00 16,200 3. NO General Journal Credit Date Jan 01, 2018 1 Cash Discount on Bonds Payable Bonds Payable ololo Debit 525,017 14.983 540.000 125 points 2 Dec 31, 2018 Interest Expense 21,001 Discount on Bonds Payable Cash 4,801 16,200 O 0 3 Dec 31, 2010 21,193 Interest Expense Discount on Bonds Payable Cash 4,993 16,200 4 Dec 31, 2020 21,193 540,000 Interest Expense Bonds Payable Cash Discount on Bonds Payable 10.2003 5.190 Jan 01, 2020 540,000 8.793 Bonds Payable Loss on Bond Retrament Discount on Bonds Payable Cash 5.100 525.017