PA10-6 (Supplement 10A) Recording Bond Issue, Interest Payments (Straight-Line Amortization), and Early Bond Retirement [LO 10-S1]

On January 1, 2015, Loop Raceway issued 690 bonds, each with a face value of $1,000, a stated interest rate of 5% paid annually on December 31, and a maturity date of December 31, 2017. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $671,543. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

PA10-6 (Supplement 10A) Recording Bond Issue, Interest Payments (Straight-Line Amortization), and Early Bond Retirement [LO 10-S1] On January 1, 2015, Loop Raceway issued 690 bonds, each with a face value of $1,000, a stated interest rate of 5% paid annually on December 31, and a maturity date of December 31, 2017 on the issue date the market interest rate was 6 percent, so the total proceeds from the bond issue were 5671,543. 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 anges During the Period Ending Bond Liability Balances on Bonds Carrying Value Discount PeriodCash Discount Interest Bonds Paid Amortized Expense Payable Ended 01/01/15 12/31/15 12/31/16 12131/17 Payable 2-5. Complete the required journal entries to record the bond issue, interest payments on December 31, 2015 and 2016, bond retirement. Assume the bonds are retired on January 1, 2017, at a price of 98. (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 issuance of 690 bonds at face value of $1,000 each for $671,543. Note: Enter debits bafore credits. Date General Journal Debit Credit January 01, 2015 Record entry Clear entry View general jourmal