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On January 1, 2018, Surreal Manufacturing Issued 620 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually

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On January 1, 2018, Surreal Manufacturing Issued 620 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 $602,797. Surreal 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 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 103 Complete this question by entering your answers in the tabs below. Req 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 equaling Discount on Bonds Payable.) Changes During the Period Interest Cash Paid Discount Expense Amortized Ending Bond Liability Balances Discount on Carrying Value Bonds Payable Ronds Payable Period Ended 01/01/18 12/31/18 12/31/10 12/31/20 Req 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 and retired on Banuary 1, 2020. at a price of 103. (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 amount.) Show less View transaction list Journal entry worksheet 2 3 4 5 Record the issuance of 620 bonds at face value of $1,000 each for $602.792 Note: Enter debits before credits General Journal Debit Credit Date Jan 01, 2018 Record entry Clear entry View general journal

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