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On January 1, 2021, Surreal Manufacturing issued 640 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, 2023. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $622,242. Surreal uses the simplified effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the 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 on January 1, 2023, at a price of 102. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. (Do not round intermediate calculations. Round your answers to the nearest whole dollar. Make sure that the Carrying value equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+)/(-) Increase in Bonds Payable, Net.) Changes During the Period End of Year Period Beginning of Year Bonds Payable, Net $ 622,242$ 627,932 633,849 01/01/21 - 12/31/21 01/01/22 - 12/31/22 01/01/23 - 12/31/23 Increase in Interest Cash Paid Expense Bonds Payable, Net 24,890$ 19,200 $ 5,690 25, 117 19,200 5,917 25,351 19,200 6,151 Bonds Payable, Net $ 627,932 633,849 640,000 Prepare the journal entries to record the bond issue, the 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 on January 1, 2023, at a price of 102. (Do not round intermediate calculations. 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.) Show less Credit No 1 Date General Journal January 01, 2021 Cash Discount on Bonds Payable Bonds Payable, Net Debit 622,242 17,758 % 640,000 2 24,890 December 31, 202 Interest Expense Discount on Bonds Payable Cash X 5,690 19,200 3 25, 117 December 31, 202 Interest Expense Discount on Bonds Payable Cash >> 5,917 19,200 4 25,351 640,000 X December 31, 202 Interest Expense Bonds Payable, Net Discount on Bonds Payable Cash >XX 6,151 659,200 01 5 64,000 January 01, 2023 Bonds Payable, Net Loss on Bond Retirement Discount on Bonds Payable Cash X 6,151 X 652,800

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