PB$10-7($Algo$)($Supplement $10$B$)$ Recording Bond Issue, Interest Payments $($Effective$-$Interest Amortization$),$ and Early Bond Retirement $[$LO $10-$S$2]$

On January $1,2021,$ Methodical Manufacturing issued $100$ bonds, each with a face value of $$1,000,$ a stated interest rate of $8$ percent paid annually on December $31,$ and a maturity date of December $31,2023.$ On the issue date, the market interest rate was $7\mathrm{.}30$ percent, so the total proceeds from the bond issue were $$101,830.$ Methodical 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 entry to record the bond issue, interest payments on December $31,2021$ and $2022,$ 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 $102.$