Question: On January 1, 2015, Loop Raceway issued 600 bonds, each with a face value of $ 1,000, a stated interest rate of 5% paid annually

On January 1, 2015, Loop Raceway issued 600 bonds, each with a of $ 1,000, a stated interest rate of 5% paid annually on December 31, and a date of December 31, 2017. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $ 583,950. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule.
2. Give the journal entry to record the bond issue.
3. Give the journal entries to record the interest payments on December 31, 2015 and 2016.
4. Give the journal entry to record the interest and payment on December 31, 2017.
5. Assume the bonds are retired on January 1, 2017, at a price of 98. Give the journal entries to record the bond retirement.

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