On January $1,2021,$ Loop Raceway issued $660$ bonds, each with a face value of $$1,000,$ a stated interest rate of $5$ percent paid annually on December $31,$ and a maturity date of December $31,2023.$ On the issue date, the market interest rate was $6$ percent, so th total proceeds from the bond issue were $$642\mathrm{.}345.$ Loop uses the straight$-$line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Requlred:

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 fac value payment on December $31,2023$ and the bond retirement. Assume the bonds are retired early on January $1,2023$ instead o at their maturity date of $\frac{12}{31}\frac{?}{2023},$ record the entry to retire the bonds early assuming a price of $98.$

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Reg $2$ 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 early on January $1,2023$ instead of at their maturity date of $\frac{12}{31}\frac{?}{2023},$ record the entry to retire the bonds early assuming a price of $98.($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

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$5$

Record the issuance of $660$ bonds at face value of $$1,000$ each for $$642,345.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,2021,,,],[,-,,],[,,,],[,,,],[,,,],[,,,]]$