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 600 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, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $583,950. 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 98. Req 1 Req 2 to 5 Prepare a bond amortization schedule. Changes During the Period Ending Bond Liability Balances Period Ended Cash Pald Discount Amortized Interest Expense Bonds Payable Discount on Bonds Payable Carrying Value 01/01/18 12/31/18 12/31/19 12/31/20 37,124 RED Reg 2 to 5 > Jan 01, 2018 Cash Discount on Bonds Payable Bonds Payable 525,898 14,171 540,000 Dec 31, 2018 37,124 x Interest Expense Discount on Bonds Payable Cash 4,724 X 32,400 x 3 Dec 31, 2019 37,124 Interest Expense Discount on Bonds Payable Cash 4.274 X 32,400 Dec 31, 2020 37,124 X Interest Expense Discount on Bonds Payable Cash Bonds Payable Cash 4,724 32,400 540,000 540,000 X U UESE Dec 31, 2019 37,124 X Interest Expense Discount on Bonds Payable Cash 4,274 X 32.400 000 000 Dec 31, 2020 37.124 X Interest Expense Discount on Bonds Payable Cash Bonds Payable Cash 4,724 32,400 540,000 X 540,000 5 L Jan 01, 2020 540,000 Bonds Payable Discount on Bonds Payable 000 Cash 4,273 523,800 11,477 X Gain on Disposal of PPE