On January 1, 2015, Loop Raceway issued 660 bonds, each with a face value of $1,000, a stated interest rate of 5% paid annually on December 31, and a maturity 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 $642,345. 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.

	Changes During the Period			Ending Bond Liability Balances
Period Ended	Cash Paid	Discount Amortized	Interest Expense	Bonds Payable	Discount on Bonds Payable	Carrying Value
01/01/15
12/31/15
12/31/16
12/31/17

Complete the required journal entries to record the bond issue, interest payments on December 31, 2015 and 2016, bond retirement. Assume the bonds are retired on January 1, 2017, at a price of 98. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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

2. Record the interest payment on December 31, 2015.

3. Record the interest payment on December 31, 2016.

4. Record the interest and face value payment on December 31, 2017.

5. Record the retirement of the bonds at a quoted price of 98, assuming the bonds are retired on January 1, 2017.