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Calculations Marketing Inc. issued 8.5% bonds with a par value of $450,000 and a five-year life on January 1, 2020, for $459,125. The bonds
Calculations Marketing Inc. issued 8.5% bonds with a par value of $450,000 and a five-year life on January 1, 2020, for $459,125. The bonds pay interest on June 30 and December 31. The market interest rate was 8% 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. 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 30/21 Dec. 31/21 June 30/22 Dec. 31/22 June 30/23 Dec. 31/23 June 30/24 Dec. 31/24 Totals
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