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On January 1, 2021, Loop Raceway issued 590 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid

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On January 1, 2021, Loop Raceway issued 590 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $574,776. Loop uses the straight-line 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, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 99. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 5 Prepare a bond amortization schedule. Changes During the Period Ending Bond Liability Balances Period Ended Cash Paid Discount Amortized Interest Expense Bonds Payable Discount on Bonds Payable Carrying Value 01/01/21 $ 500,000 $ 15,224 $ 574,776 12/31/21 $ 29,500 $ 5,075 $34,575 590,000 10,149 O 579,851 12/31/22 12/31/23 29,500 O 29.500 5,075 O 5,074 34,575 590,000 5,074 34.574 500,000 584,926 500,000

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