Extracted text: On January 1, 2021, 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, 2023. 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 simplified 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 102. X 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 102. (Do not round intermediate calculations. 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.) Show less A
Extracted text: No Date General Journal Debit Credit 1 January 01, 2021 Cash 525,017 Bonds Payable, Net 525,017 2 December 31, 202 Interest Expense 21,001 Bonds Payable, Net 4,801 Cash 16,200 3 December 31, 202 Interest Expense 21,193 Bonds Payable, Net 4,993 Cash 16,200 4 December 31, 202 Interest Expense 21,390 Bonds Payable, Net 5,190 Cash 16,200 X January 01, 2023 Bonds Payable, Net Loss on Bond Retirement Cash < req="" 1="" req="" 2="" to="" 5="">