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10.00 points On January 1, 2013, Surreal Manufacturing issued 790 bonds, each with a face value of $1,000, a stated interest rate of 3.50 percent

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10.00 points On January 1, 2013, Surreal Manufacturing issued 790 bonds, each with a face value of $1,000, a stated interest rate of 3.50 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $779,041. Surreal uses the effective-interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar.) Changes During the Period Ending Bond Liability Balances Discount on Period Ended Interest Expense Cash Paid Discount Amortized Bonds Payable Carrying Value Pavable 01/01/13 12/31/13 12/31/14 12/31/15 2. Prepare the journal entry to record the bond issue. (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 Record the bond issue. Note: Enter debits before credits Date Jan 01, 2013 General Journal Debit / / 1 / TTTT Record entry Clear entry View general journal 3. Prepare the journal entries to record the interest payments on December 31, 2013 and 2014. (If no entry is required for a transaction event, select "No journal entry required in the first account field. Round your final answers to the nearest whole dollar) View transaction list Journal entry worksheet Record the interest payments on December 31, 2013. Note: Enter debits before credits General Journal Debit Credit Date Dec 31, 2013 Record entry Clear entry View general journal 4. Prepare the journal entry to record the interest and face value payment on December 31, 2015. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your final answers to the nearest whole dollar) View transaction list Journal entry worksheet Record the interest and face value payment on December 31, 2015. Note: Enter debits before credits General Journal Debit Credit Date Dec 31, 2015 Record entry Clear entry View general journal 5. Assume the bonds are retired on January 1, 2015, at a price of 101. Give the journal entry to record the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the bond retirement Note: Enter debits before credits Date General Journal Debit Credit Dec 31, 2015 Record entry Clear entry View general journal

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