Question: On January 1, 2017, Loop de Loop Raceway issued 680 bonds, each with a face value of $1,000, a stated interest rate of 7 percent

On January 1, 2017, Loop de Loop Raceway issued 680 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, 2019. On the issue date, the market interest rate was

8 percent, so the total proceeds from the bond issue were $662,454.

Loop de Loop uses the straight-line bond amortization method. Required: 1. Prepare

On January 1, 2017, Loop de Loop Raceway issued 680 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, 2019. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $662,454. Loop de Loop uses the straight-line bond amortization method. Required: 1. Prepare a bond amortization schedule. Changes During the Period Ending Bond Liability Balances Discount on Bonds Discount Interest Bonds Period Ended Cash Paid Carrying Value Amortized Expense Payable Payable 01/01/17 12/31/17 12/31/18 12/31/19 2. Prepare the journal entry to record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 2. Prepare the journal entry to record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of bond. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2017 Record entry Clear entry View general journal 3. Prepare the journal entries to record the interest payments on December 31, 2017, and 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the interest payments on December 31, 2017. Note: Enter debits before credits. Debit Date General Journal Credit Dec 31, 2017 Record entry Clear entry View general journal 3. Prepare the journal entries to record the interest payments on December 31, 2017, and 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the interest payments on December 31, 2018. Note: Enter debits before credits. Debit Date General Journal Credit Dec 31, 2018 Record entry Clear entry View general journal 4. Prepare the journal entry to record the interest and face value payment on December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the interest and face value payment on December 31, 2019 Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2019 View general journal Record entry Clear entry 5. Assume the bonds are retired on January 1, 2019, at a price of 98. Give the journal entries to record the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the bond retirement. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2019 Clear entry View general journal Record entry

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