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PA10-6 (Supplement 10A) Recording Bond Issue, Interest Payments (Straight-Line Amortization), and Early Bond Retirement [LO 10-S1) On January 1, 2018, Loop Raceway issued 560 bonds,

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PA10-6 (Supplement 10A) Recording Bond Issue, Interest Payments (Straight-Line Amortization), and Early Bond Retirement [LO 10-S1) On January 1, 2018, Loop Raceway issued 560 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, 2020. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $545,550. 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, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 99. Complete this question by entering your answers in the tabs below. Reg 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 $ $ 0 01/01/18 12/31/18 12/31/19 12/31/20 560,000 560,000 560,000 $ 560,000 560,000 560,000 560,000 0 0 560,000 Journal entry worksheet Record the issuance of 560 bonds at face value of $1,000 each for $545,550. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2018 Record entry Clear entry View general journal Record the interest payment on December 31, 2018. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2018 Record entry Clear entry View general journal Record the interest payment on December 31, 2019. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2019 Record entry Clear entry View general journal Journal entry worksheet Record the interest and face value payment on December 31, 2020. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2020 Record entry Clear entry View general journal

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