Part B (journal entries):

Journal entries:

1 (Jan 01, 2018). Record the issuance of 570 bonds at face value of $1,000 each for $555,042

2 (Dec 31, 2018). Record the interest payment on December 31, 2018.

3 (Dec 31, 2019). Record the interest payment on December 31, 2019.

4 (Dec 31, 2020). Record the interest and face value payment on December 31, 2020.

5 (Jan 01, 2020). Record the retirement of the bonds at a quoted price of 97, assuming the bonds are retire on January 1, 2020.

On January 1, 2018, Loop Raceway issued 570 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $555,042. 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 97. Complete this question by entering your answers in the tabs below. Req 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 01/01/18 12/31/18 12/31/19 12/31/20 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 97. (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 2 4. Record the issuance of 570 bonds at face value of $1,000 each for $555,042 Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2018 Record entry Clear entry View general journal