6 Calculations Marketing Inc. issued 12.5% bonds with a par value of $390,000 and a five-year life on January 1, 2020, for $397,176. The bonds pay interest on June 30 and December 31. The market interest rate was 12% on the original issue date. Use TABLE 14A.1 and TABLE 14A.2. (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the total bond interest expense over the life of the bonds. References Total interest expense $ 236,574 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 $ 0$ 0 $ 0 $ 7,176 $ 397,176 June 30/20 24,375 23,831 544 6,632 396,632 Dec. 31/20 24,375 23,798 577 6,054 396,054 June 30/21 24,375 23,763 612 5,443 395,443 Dec. 31/21 24,375 23,727 648 4,794 394,794 June 30/22 24,375 23,688 687 4,107 394,107 Dec. 31/22 24,375 23,646 729 3,378 393,378 June 30/23 24,375 23,603 772 2,606 392,607 Dec. 31/23 24,375 23,556 819 1,787 391,787 June 30/24 24,375 23,507 868 920 390,920 Dec. 31/24 24,375 23,455 920 0 390,000 Totals $ 243,750 $ 236,574 $ 7,176 6 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.) Answer is complete and correct. No Date General Journal Debit Credit 1 June 30, 2020 Bond interest expense 23,831 Premium on bonds payable 544 Cash 24,375 2 December 31, 202 Bond interest expense Premium on bonds payable Cash 23,798 577 24,375 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.) Answer is not complete. Present value of the remaining cash flows