Question
Please figure out what what is wrong in red. On January 1, 2021, Surreal Manufacturing issued 520 bonds, each with a face value of $1,000,
Please figure out what what is wrong in red.
On January 1, 2021, Surreal Manufacturing issued 520 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 $505,572. 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. Req 1 Req 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 A Credit No 1 2 3 4 5 Date January 01, 2021 General Journal Cash Discount on Bonds Payable Bonds Payable Debit 505,572 14,428 e December 31, 202 Interest Expense Discount on Bonds Payable Cash December 31, 202 Interest Expense Discount on Bonds Payable Cash December 31, 202 Interest Expense Discount on Bonds Payable Cash January 01, 2023 Discount on Bonds Payable Loss on Bond Retirement Cash < Req 1 e 520,000 e 20,223 e 4,623 e 15,600 20,408 e 4,808 e 15,600 e 20,597 e 515,003 @ 535,600 515,003 10,197 e 525,200 e
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