On January 1, 2018, Surreal Manufacturing issued 540 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, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $525,017. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar amount.)

Record the issuance of 540 bonds at face value of $1,000 each for $525,017. Record the interest payment on December 31, 2018. Record the interest payment on December 31, 2019 Record the interest and face value payment on December 2 3 4 31, 2020 Record the retirement of the bonds at a quoted price of 102, assuming the bonds are retired on January 1, 2020 5