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On January 1, 2020, Loop de Loop Raceway Issued 610 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 610 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 $593,992. Loop de loop uses the straight-line bond amortization method. Required: 1. Prepare a bond amortization schedule. Changes During the Period Cash Pald Discount Amortired Porlod Ended Interest Expense Ending Bond Liability Balances Bonds Discount on Payable Carrying Value Payablo Bonds 01/01/20 12/31/20 12/31/21 12/31/22 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.) View transaction list Journal entry worksheet Record the interest payments on December 31, 2020, Note: Enter debit before credits Goneral Journal Date Dec 31, 2020 Dobit Credit Record entry Clear entry View general journal 4. Prepare the journal entry to record the interest and face value payment on December 31, 2022. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet
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