In: Accounting
On January 1, 2015, Loop Raceway issued 600 bonds, each with a face value of $1,000, a stated
interest rate of 5% paid annually on December 31, and a maturity date of December 31, 2017. On
the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue
were $583,950. Loop uses the straight-line bond amortization method and adjusts for any rounding
errors when recording interest in the final year.
Required: Show T-accounts records from January 1 2015.