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the last entry of general journal please On January 1, 2015, Surreal Manufacturing issued 540 bonds, each with a face value of $1,000, a stated
the last entry of general journal please
On January 1, 2015, Surreal Manufacturing issued 540 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, 2017. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $525,017. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required 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.) Changes During the Period Period Ended Interest Expense Discount Amortized Ending Bond Liability Balances Discount on Bonds Pavable Cash Paid Bonds Payable Carrying Value 01/01/15 12/31/15 12/31/16 12/31/17 21,001 21,193 21,392 16,200 16,200 16,200 4,801 4,993 5,192 540,000 540,000 540,000 10,182 5,189 529,818 534,811 540,000 Complete the required journal entries to record the bond issue, interest payments on December 31, 2015 and 2016, interest and face value payment on December 31, 2017, and bond retirement. Assume the bonds are retired on January 1, 2017, at a price of 102. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 4 Record the retirement of the bonds at a quoted price of 102, assuming the bonds are retired on January 1, 2017 rather than holding them until maturity. Note: Enter debits before credits Date General Journal Debit Credit January 01, 2017 Bonds Payable 540,000 Loss on Bond Retirement 55,080 Cash 484,920 Record entry Clear entry View general journalStep by Step Solution
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