On January $1,2024,$ Surreal Manufacturing issued $550$ bonds, each with a face value of $$1,000,$ a stated interest rate of $3$ percent paid annually on December $31,$ and a maturity date of December $31,2026.$ On the issue date, the market interest rate was $4$ percent, so the total proceeds from the bond issue were $$534,739.$ Surreal uses the simplified effective$-$interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

Prepare a bond amortization schedule.

$2-5.$ Prepare the journal entries to record the bond issue, the interest payments on December $31,2024$ and $2025,$ the interest and face value payment on December $31,2026$ and the bond retirement. Assume the bonds are retired early on January $1,2026$ instead of at their maturity date of $\frac{12}{31}\frac{?}{2026},$ record the entry to retire the bonds early assuming a price of $101.$

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Req $2$ to $5$

Prepare the journal entries to record the bond issue, the interest payments on December $31,2024$ and $2025,$ the interest and face value payment on December $31,2026$ and the bond retirement. Assume the bonds are retired early on January $1,2026$ instead of at their maturity date of $\frac{12}{31}\frac{?}{2026},$ record the entry to retire the bonds early assuming a price of $101.$

Note: Do not round intermediate calculations. If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.

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