Question: Type or paste question here On January 1, 2013, Loop de Loop Raceway issued 680 bonds, each with a face value of $1,000, a stated

Type or paste question here On January 1, 2013, 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 Type or paste question here

On January 1, 2013, 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, 2015. 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 Period Ended Ending Bond Liability Balances Discount on Bonds Bonds Payable Carrying Value Payable Discount Amortized Cash Paid Interest Expense 01/01/13 12/31/13 12/31/14 12/31/15 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 Record the issuance of bond. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2013 Record entry Clear entry View general journal 3. Prepare the journal entries to record the interest payments on December 31, 2013 and 2014. (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 payments on December 31, 2013. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2013 Record entry Clear entry View general journal 4. Prepare the journal entry to record the interest and face value payment on December 31, 2015. (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, 2015. 5. Assume the bonds are retired on January 1, 2015, 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

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