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On January 1, 2015, Surreal Manufacturing issued 680 bonds, each with a face value of...

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Accounting

imageimageOn January 1, 2015, Surreal Manufacturing issued 680 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, 2017.

On January 1, 2015, Surreal Manufacturing issued 680 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, 2017. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $661,132. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year Required Prepare a bond amortization schedule. Round your answers to the nearest whole dollar Make sure that the Carrying value equals face value of the bond in the last period. Interest expense in the last period will result in the amount in Discount Amortized equaling Discount on Bonds Payable.) Ending Bond Liability Balances Discount on Changes During the Period Discount Bonds Payable Bonds Payable Amortized Period Interest Expense Carrying Value Cash Paid Ended 01/01/15 12/31/15 12/31/16 12/31/17

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