Business, 08.03.2021 19:40 sduquesnay23ocesdcom

On January 1, 2018, Surreal Manufacturing issued 600 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 $583,352. Surreal uses the 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.
2. 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.

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On January 1, 2018, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stat...

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