Calculations Marketing Inc. issued $9\mathrm{.}0\%$ bonds with a par value of $$360,000$ and a five$-$year life on January $1,2020,$ for

$$374,600.$ The bonds pay interest on June $30$ and December $31.$ The market interest rate was $8\%$ on the original issue

date. Use TABLE $14$A$\mathrm{.}1$ and TABLE $14$A$\mathrm{.}2.($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

Calculate the total bond interest expense over the life of the bonds.

Total interest

expense

Prepare an amortization table using the effective interest method. $($Do not round intermediate calculations. Round

the final answers to the nearest whole dollar.$)$

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

$1$

$2$

Record the six months' interest and premium

amortization.

Note: Enter debits before credits.

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