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On January 1, 2020, Loop de Loop Raceway issued 570 bonds, each with a face value of $1,000, a stated interest rate of 6 percent
On January 1, 2020, Loop de Loop Raceway issued 570 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31,2022. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $555,042. Loop de Loop uses the straight-line bond amortization method. Required: 1. Prepare a bond amortization schedule. 2. Prepare the journal entry to record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. 4. Prepare the journal entry to record the interest and face value payment on December 31,2022 . (If no entry is required for transaction/event, select "No journal entry required" in the first account field.) 5. Assume the bonds are retired on January 1,2022, at a price of 98 . Give the journal entries to record the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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