PB10-7 (Supplement 10B) Recording Bond Issue, Interest Payments (Effective-Interest Amortization), and Early Bond Retirement [LO 10-S2) On January 1, 2018, Methodical Manufacturing issued 100 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 4.25 percent, so the total proceeds from the bond issue were $102,070. 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, 2018 and 2019, 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 101. Complete this question by entering your answers in the tabs below. Req1 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 Premium Amortized equalling Premium on Bonds Payable.) Changes During the Period Ending Bond Liability Balances Period Interest Premium Premium on Cash Pald Bonds Payable Ended Expense Carrying Value Bonds Payable 01/01/18 12/31/18 12/31/19 12/31/20 Amortized Reg 2 to 5 > View transaction list Journal entry worksheet Record the Issuance of 100 bonds at face value of $1,000 each for $102,070. Note: Enter debits before credits. General Journal Debit Date Jan 01, 2018 Credit Record entry Clear entry View general Journal Journal entry worksheet