PA10-7 (Algo) (Supplement 10B) Recording Bond Issue, Interest Payments (Effective-Interest Amortization), and Early Bond Retirement [LO 10-52] On January 1, 2021, Surreal Manufacturing issued 660 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $641,687. Surreal uses the effective-interest 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 101. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the Carrying value equals face value of the bond in the last period. Interest expense in the last period will result in the amount in Discount Amortized equaling Discount on Bonds Payable.) Interest Expense Changes During the Period Cash Paid Discount Amortized S Period Ended 01/01/21 12/31/21 12/31/22 12/31/23 Ending Bond Liability Balances Bonds Discount on Payable Bonds Payable 660,000 $ 18,313 $ 660,000 11,713 660,000 5,113 X 660,000 0 s $ 26,400 s 26,400 x 24,913 19,800 19,800 19,800 6,600 6,600 5,113 Carrying Value 641,687 648,287 654,887 660,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 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 101. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar amount.) Show less No Date General Journal Debit Credit 1 January 01, 2021 Cash 641,687 18,313 Discount on Bonds Payable Bonds Payable 660,000 2 26,400 December 31, 2021 Interest Expense Discount on Bonds Payable Cash 6,600 19,800 3 26,400 December 31, 2022 Interest Expense Discount on Bonds Payable Cash 6,600 19,800 4 24,913 December 31, 2023 Interest Expense Discount on Bonds Payable Cash 5,113 19,800 5 January 01, 2023 Bonds Payable 660,000 Cash 660,000