14-8A Bond premium amortization and finding the present value of remaining cash flows LO6 Calculations Marketing Inc. Issued 7.0% bonds with a par value of $370,000 and a five-year life on January 1, 2020, for $385,781. The bonds pay interest on June 30 and December 31. The market interest rate was 6% on the original issue date. Use JABLE 14A1 and TABLE 14A2 (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the total bond interest expense over the life of the bonds Total interest expense 2. Prepare an amortization table using the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Period Ending Cash Interest Paid Period interest Expense Premium Amort Unamortized premium Carrying Value Jan 1/20 June 30/20 Dec. 31/20 June 3021 Dec 3121 June 30/22 Prey 1 of 7 Next > es 3. Show the journal entries that Calculations Marketing Inc. would make to record the first two interest payments assuming a December 31 year-end. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet < 2 4 Record the six months' Interest and premium amortization. Note: Enter debits before credits Date June 30, 2020 General Journal Debit Credit Record entry Clear entry View general journal Prey 1 of 7 Next > 4. Use the original market interest rate to calculate the present value of the remaining cash flows for these bonds as of December 31, 2022. Compare your answer with the amount shown on the amortization table as the balance for that date. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Present value of the remaining cash flows