On January 1, 2018, Surreal Manufacturing issued 700 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 $680,577. 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 Req 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.) Beginning of Year Changes During the Period End of Year Bonds Interest Increase in Period Bonds Payable, Bonds Payable, Cash Paid Expense Net Net Payable, Net 01/01/18 $ 27,223 * $ 21,000 $ 6,223 $ 14,777 $ 42,000 12/31/18 01/01/19 - 27,472 21,000 6,472 14,528 12/31/19 42,000 01/01/20 - 27.728 21,000 6,728 14,272 42,000 12/31/20