On January 1, 2018, Surreal Manufacturing issued 610 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 $593,074. Surreal uses the simplified 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 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. (Do not round intermediate calculations. Round your answers to the nearest whole dollar. Make sure that the Carrying value equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+)/(-) Reduction in Bonds Payable, Net.) End of Year Beginning of Year Bonds Payable, Period Bonds Payable, Net Changes During the Period Increase in Interest Expense Cash Paid Bonds Payable, Net 23,723 $ 18,300 $ 5,423 23,940 18,300 5,640 24,163 18,300 5,863 598,497 $ $ 01/01/18 - 12/31/18 01/01/19 - 12/31/19 01/01/20 - 12/31/20 603,920 604,137 609,777 610,000 615,863 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. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) Show less No Credit Dato Jan 01, 2018 General Journal Cash Discount on Bonds Payable Bonds Payable, Net Debit 593,074 16,926 X 610,000 $ Dec 31, 2018 Interest Expense 23,723 Discount on Bonds Payable Cash 5,423 18,300 Dec 31, 2019 Interest Expense 23,940 Cash 18,300 5,640 Discount on Bonds Payable Dec 31, 2020 24,163 interest Expense Discount on Bonds Payable Cash 5,863 18,300 5 Jan 01, 2020 Bonds Payable, Net Loss on Bond Retirement Cash Discount on Bonds Payable 610,000 18,063 OOO 5,863 622,200