PB$10-6($Algo$)($Supplement $10$A$)$ Recording Bond Issue, Interest Payments $($Straight$-$Line Amortization$),$ and Early Bond Retirement $[$ LO $10-$S$1]$

On January $1,2021,$ Methodical Manufacturing issued $100$ bonds, each with a face value of $$1,000,$ a stated interest rate of $7$ percent paid annually on December $31,$ and a maturity date of December $31,2023.$ On the issue date, the market interest rate was $6\mathrm{.}30$ percent, so the total proceeds from the bond issue were $$101,857.$ Methodical uses the straight$-$line 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 required journal entries to record the bond issue, 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 $104.$

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ to $5$

Prepare a bond amortization schedule.

$\backslash$table$[[$Period Ended,Changes During the Period,Ending Bond Liability Balances$],[,\backslash$table$[[$Cash$],[$aaid$]],\backslash$table$[[$Premium$],[$Amortized$]],,,\backslash$table$[[$Bonds$],[$Payable$]],\backslash$table$[[$Premium on$],[$Bonds$],[$Payable$]],$Carrying Value$],[01/01/21,,,,,,,,$$