On January 1, 2012, Loop Raceway Issued 650 bonds, each with a face value of $1,000, a stated interest rate of 7% paid annually on December 31, and a maturity date of December 31, 2014. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $633,228. Loop uses the straight line bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule.
What is the value for cash paid and interest expense, as well as the empty cell in discount on bonds since I have to account for rounding errors.
Thanks