1 On January 1, 2018, Loop Raceway issued 560 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market Interest rate was 8 percent, so the total proceeds from the bond issue were $545,550. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Is Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 99. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. Changes During the Period Period Ended Cash Paid Discount Amortized Interest Expense Ending Bond Liability Balances Bonds Discount Carrying on Bonds Payable Payable Value $ 560,000$ 14460 $ 546,650 560,000 10,006 549,994 560,000 5,200 654,794 560.000 0 560,000 01/01/18 12/31/18 12/31/10 12/31/20 $ 39,200 $ 39,200 39,200 4,444 $ 43,644 4,800 44.000 5,206 44406 Reg 2 tot > Reg 1 Req 2 to 5 Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 99. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Date General Journal Credit 1 Jan 01, 2018 Cash Discount on Bonds Payable Bonds Payable Debit 545,550 14,450 560,000 2 Dec 31, 2018 43,644 Interest Expense Cash Discount on Bonds Payable OO 39,200 4,444 3 Dec 31, 2019 44,000 % Interest Expense Discount on Bonds Payable Cash O 4,800 39,200 Dec 31, 2020 44,406 9 Interest Expense Cash Discount on Bonds Payable 39.200 5,206 5 Jan 01, 2020 560,000 . Bonds Payable Gain on Bond Retirement Discount on Bonds Payable Cash OOO 394 5,206 554,400