On January 1, 2021, Loop Raceway issued 660 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $642,345. 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 98.

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Req 1

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				$660,000
12/31/21				660,000
12/31/22				660,000
12/31/23				660,000

Req 1

Req 2 to 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 98. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

No	Date	General Journal	Debit	Credit
1	January 01, 2021	Cash	642,345
		Bonds Payable		66,000
		Discount on Bonds Payable		17,655
2	December 31, 2021	Interest Expense	31,455
		Discount on Bonds Payable		5,885
		Cash		27,570
3	December 31, 2022	Interest Expense	31,455
		Discount on Bonds Payable		5,885
		Cash		665,885
4	December 31, 2023	Insurance Expense	31,455
		Discount on Bonds Payable		5,885
		Cash		665,885
5	January 01, 2023	Cash	643,680
		Discount on Bonds Payable		19,320
		Bonds Payable		660,000