Ellis issues 6.5%, five-year bonds dated January 1, 2018, with a $570,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $582,159. The annual market rate is 6% on the issue date. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)

Required:

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

2. Prepare an effective interest amortization table for the bonds life.

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

4. Use the market rate at issuance to compute the present value of the remaining cash flows for these bonds as of December 31, 2020.

On January 1, 2018, Eagle borrows $35,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $10,333, consisting of accrued interest and principal on December 31 of each year from 2018 through 2021. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest dollar amount. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Prepare the journal entries for Eagle to record the loan on January 1, 2018, and the four payments from December 31, 2018, through December 31, 2021 View transaction list Import a new list Eagle borrows $35,000 cash by signing a four-year, 796 installment note. Record the issuance of the note on January 1, 2018. 1 ote. 2 Record the payment of the first installment payment of interest and principal on December 31, 2018 Record the payment of the second installment payment of interest and principal on December 31, 2019 3 Credit Record the payment of the third installment payment of interest and principal on December 31, 2020 4 5 Record the payment of the fourth installment payment of interest and principal on December 31, 2021 Present Value of 1 Perlods 9% 2% 3% 7% 8% 9% 10% 12% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.93460.9259 0.9174 0.9091 0.8929 0.8696 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.87340.8573 0.8417 0.82640.7972 0.7561 0.9706 0.94230.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7118 0.6575 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6355 0.5718 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 0.4972 0.9420 0.8880 0.8375 0.79030.7462 0.7050 0.6663 0.6302 0.59630.5645 0.5066 0.4323 0.9327 0.8706 0.8131 0.7599 0.7107 0.66510.6227 0.5835 0.54700.5132 0.4523 0.3759 0.9235 0.8535 0.7894 0.73070.6768 0.62740.5820 0.5403 0.5019 0.4665 0.4039 0.3269 0.9143 0.8368 0.76640.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606 0.2843 0.9053 0.8203 0.74410.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3220 0.2472 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.2875 0.2149 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.1869 0.87870.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.36770.3262 0.2897 0.2292 0.1625 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2046 0.1413 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1229 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1631 0.1069 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1456 0.0929 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1300 0.0808 0.82770.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1161 0.0703 20 0.8195 0.6730 0.5537 0.45640.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1037 0.0611 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0023 0.0588 00004 0.7419 0.5521 0.4120 0.3083 0.2314 0.174 0.1314 0.0994 0.0754 0.05730.0334 0.0151 0.7059 0.5000 0.3554 0.2534 0.1813 0.1301 0.0937 0.0676 0.0490 0.0356 0.0189 0.0075 0.67170.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0107 0.0037 Used to compute the present value of a known future amount or example: How much would ou need to in est to a at 10% compounded semannuall to accumulate $50 in 6 ears from today? Using the factors of n 1 2 and i 5% ( 12 semiannual periods and a semiannual rate of 5%), the factor is 05568. You would need to in est S2.784 today ($5000 05568). TABLE B.2 Future Value of 1 2% 31% 5% 6% 7% 8% 10% 12 1.0201 .0404 1.0609 1.0816 .1025 0303 .0612 0927 1.1249 1576 .1910 2 1.3310 1.4049 0510 1.1041 1.1593 12167 1.2763 1.3382 1.77161.9738 1.9487 2.2107 .0721 1.1487 1.2299 1.3159 1.4071 1.5036 0829 1.1717 1.2668 1.3686 1.47751.5938 .09371.1951 1.3048 1.4233 1.5513 1.6895 1.1046 1.2190 1.3439 1.4802 1.6289 .7908 1157 1.2434 1.3842 5395 1.7103 1.8983 2.1049 1.1268 .2682 14258 1.6010 7959 2.0122 2.2522 2 1.1381 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 .14951.3195 1.5126 1.7317 1.97992.2609 2.5785 2.93723.3417 3.797548871 .1610 3459 1.5580 1.8009 2.0789 2.3966 2.7590 3.1722 3.6425 4.17 1.1726 1.3728 1.6047 1.87302.1829 2.5404 2.9522 1.18431.4002 1.6528 1.94792.2920 2.6928 3.1588 1.1961 .4282 1.7024 2.0258 2.4066 2.8543 3.3799 1.2081 1.4568 .7535 2.1068 2.5270 3.0256 3.6165 1.2202 1.4859 1.8061 2.1911 2.6533 3.2071 3 1.2824 1.6406 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.83477.0001 1.3478 1.8114 2.4273 3.24344.3219 5.7435 7.6123 10.0627 13.2677 7.4494 29.9599 1.41661.9999 2.8139 3.9461 5.5160 7.6861 10.6766 14.785320.4140 28.102452.7996 133.1755 .4889 2.2080 3.2620 4.8010 7.0400 10.2857 14.9745 21.7245 31.4094 45.2593 93.0510 267 8635 2.1589 2.3674 2.3316 2.5804 27196 3.0658 3.4259 3.9703 17 3.9960 4.7171 20 Used to compute the future value of a known present amount. For example: what is the accumulated value of S3.000 invested today at 8% compounded quarterly for 5 years? Using the factors of n 20 and i 2% (20) quanerly periods and a quarterly interest rate of 2%), te factor is 1.4859. The accumulated value is S4.457.70 ($3,000 x 1.4859). Present Value of an Annuity of 1 Rate Perlods 2% 3% 8% 7% 9% 10% 12% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 09259 09174 0.9091 o8 29 0 8596 97041.9416 1.9135 1.8861 1.85941.8334 8080 1.7833 1.7591 1.7355 1.6901 1.6257 2.9410 2.8839 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4869 2.4018 2.2832 3.9020 3.8077 3.717 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.0373 2.8550 4.85344.7135 4.57974.4518 4.3295 4.2124 4.1002 3.99273.8897 3.7908 3.6048 3.3522 .7955 5.6014 5.41725.2421 5.0757 4.91734.7665 4.6229 4.4859 4.3553 4.1114 3.7845 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 50330 48684 45638 1604 5.9713 5.7466 5.5348 5.3349 4.9676 4.4873 8.5660 8.1622 .7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.3282 4.7716 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.6502 5.0188 10.3676 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 68052 6 4951 53377 5233 1.2551 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.1944 5.4206 2.1337 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.4235 5.5831 3.0037 12.1062 112961 10.5631 9.8986 9.2950 8.7455 8.24427.7862 7.36676.6282 5.7245 3.8651 12.8493 11.937911.1184 10.37979.7122 9.1079 8.5595 8.0607 7.6061 6.81095.8474 4.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.85148.3126 7.8237 6.9740 5.9542 17 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.0472 7.65177.3255 7.0197 6.7327 6.4632 6.2098 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 87556 8.2014 72497 6.1280 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.3658 6.1982 20 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.4694 6.2593 22.0232 19.5235 17.4131 15.622114.0939 12.7834 11.6536 10.6748 9.8226 9.0770 7.8431 6.4641 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 102737 9.4259 8.0552 6.5660 29.4086 24.9986 21.4872 18.6646 16.3742 14.4982 12.9477 11.6546 10.5668 9.64428.1755 6.6166 2.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.2438 6.6418 Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming an annual interest rate of 9%. For (n= 10. = 9%), the PV factor is 6.4177. S2.000 per year for 10 years is the equivalent of $12.835 today (S2000 6.4177) TABLE B.4 Future Value of an Annuity of 1 Rate Perlods 2% 3% 4% 5% 7% 8% 9% 15 1.0000 1.0000 1.0000 1.0000 1.0000 .0000 1.0000 10000 10000 1.0000 1.0000 2.0100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000 2.1200 3.0301 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.3100 3.3744 4.0604 4.1216 4.18364.24654.3101 4.3746 4.4399 4.50614.57314.6410 4.7793 4.9934 6.7424 8.7537 7.2135 7.43437.6625 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0890 11.0668 8.2857 8.5830 8.8923 9.2142 9.5491 9.8975 10.2598 10.6366 11.0285 11.4359 12.2997 13.7268 16.7858 10 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 17.548720.3037 11 11.5668 12.1687 12.8078 13.4864 14.2068 14.9716 15.7836 16.6455 17.5603 18.5312 20.6546 24.3493 5.1010 5.2040 5.3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.3528 6.1520 6.30816.4684 6.6330 6.8019 6.97537.1533 7.3359 7.5233 7.7156 8.1152 9.3685 9.7546 10.1591 10.5828 11.0266 11.4913 11.9780 12.4876 13.0210 13.5795 14.7757 12 12.6825 13.4121 14.1920 15.0258 15.9171 16.8699 17.8885 18.9771 20.1407 213843 24.1331 29.00 13 13.8093 14.6803 15.6178 16.6268 17.713018.882120.1406 21.4953 22.9534 24.5227 28.0291 34.3519 14 14.9474 15.9739 17.0863 18.2919 19.5986 21.0151 22.5505 24.2149 26.0192 27.9750 32.3926 40.5047 15 16.0969 17.2934 18.5989 20.0236 21.5786 23.2760 25.1290 27.1521 29.3609 31.7725 37.2797 7.2579 18.6393 20.1569 21.8245 23.6575 25.6725 27.8881 30.3243 33.0034 35.9497 42.7533 55.7175 17 18.4304 20.0121 21.7616 23.6975 25.8404 28.2129 30.8402 33.7502 36.973740.544748.8837 65.0751 18 19.6147 21.4123 23.4144 25.6454 28.1324 30.9057 33.9990 37.4502 41.3013 45.5992 55.7497 75.8364 88.2118 20 22.0190 24.2974 26.8704 29.7781 33.0660 36.7856 40.9955 45.7620 51.1601 57.2750 72.0524 102.4436 25 28.2432 32.0303 36.4593 41.6459 47.7271 54.8645 63.2490 73.1059 84.7009 98.3471 133.3339 212.7930 30 34.7849 40.5681 47.5754 56.0849 66.4388 79.0582 94.4608 113.2832 136.3075 164.4940 241.3327 434.7451 35 41.6603 49.9945 60.4621 73.6522 90.3203 111.4348 138.2369 172.3168 215.7108 271.0244 431.6635 881.1702 40 48.8864 60.4020 75.4013 95.0255 120.7998 154.7620 199.6351 259.0565 337.8824442.5926 767.0914 1,779.0903 19 20.8109 22.840625.1169 27.6712 30.5390 33.760037.3790 41.4463 46.0185 51.1591 63.4397 Used to calculate the future value of a series of equal payments made at the end of each period. For example: What is the future value of S400 per ear for 6 years assuming an annual interest rate of 8%. For (n = 6, 1= 8%), the FV factor is 7.3359. S4.000 per year for 6 years accumulates to $29,343.60 ($4,000 7.3359)