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 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.

Required: 1. Calculate the total bond interest expense over the life of the bonds. Total interest expense $ 113,719 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 $ 15,781 $ 385,781 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 June 30/22 Dec. 31/22 12,950 12,950 12,950 12,950 12,950 12,950 12,950 12,950 12,950 12,950 129,500 $ June 30/23 Dec. 31/23 June 30/24 370,000 370,000 Dec. 31/24 0 Totals $ 0 $ 0 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 X > 1 Record the six months' interest and premium amortization. 2 Record the six months' interest and premium amortization. Credit Note : = journal entry has been entered Record entry Clear entry View general journal