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 $582159. The annual market rate is 6% on the issue date. (Table B1, TableB.2, Table B3, and Table B-9 (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. Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3Required 4 Compute the total bond interest expense over the bonds' life Total bond interest expense over life of bonds Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Required 3 Required Required 1 Prepare an effective interest amortization table for the bonds' life. Semiannual Interest Cash Interest Bond Interest Premium Required 2 4 Unamortized Premium Carrying Value 12,155$582,155 580,940 579,724 578,508 Period-End 01/01/2018 06/30/2018 12/31/2018 06/30/2019 12/31/2019 06/30/2020 12/31/2020 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Total Paid Expense Amortization 18.525 $ 17,310$ 18,525 18,525 18,525 1,216 1,216 1,216 10,940 9,724 8,508 17,310 17,310 Required 1Required 2 Required 3 Required 4 Prepare the journal entries to record the first two interest payments. View transaction list View journal entry worksheet No Date General Journal Debit Credit | | 17,310 1,216 1 Bond interest expense Premium on bonds payable Jun 30, 2018 Cash 18,525 17,310 1,216 | 2 | Dec 31, 2018 Bond interest expense Premium on bonds payable Cash 18,525 Required 1 Required 2 Required 3 Required 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. (Round table values to 4 decimal places, and use rounded values in all calculations.) Table values are based on: Cash Flow Par (maturity) value Interest (annuity) Price of bonds Table Value Amount Present Value 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). 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)