Bonds: $$100,000$ Par Value, Semiannual Interest Payments, Two$-$Year Life,

$4\%$ Semiannual Contract Rate, $5\mathrm{.}0155\%$ Semiannual Market RateProblem $10-10$A Effective Interest: Amortization of bond premium P$5$

Refer to the bond details in Problem $10-3$A$.$

B

Required

$1.$ Compute the total bond interest expense over the bonds$$ life.

$2.$ Prepare an effective interest amortization table like the one in Exhibit $10$B$\mathrm{.}2$ for the bonds$$ life.

Check $(2)6/30/2023$ carrying value, $$252,865$

$3.$ Prepare the journal entries to record the first two interest payments

"Ellis Company issues $6\mathrm{.}5\%,$ five$-$year bonds dated January $1,2021,$ with a $$250,000$ par value. The bonds pay interest on June $30$ and

December $31$ and are issued at a price of $$255,333.$ The annual market rate is $6\%$ on the issue date."