ffective Interest Amortization Check my wa Problem 14-9AB Effective Interest: Amortization of bond premium; computing bond price LO P1, P6 Ellis issues 90% five-year bonds dated January 1, 2017, with a $480,000 par value. The bonds pay interest on June 30 and December 31and are issued at a price of $499483. The annual market rate is 8% on the issue date ble B1 Table B2 Table B3 and Iable 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 2019 Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Required 4 Prepare an effective interest amortization table for the bonds' life. nual P Cash Interest Bond Interest Premium U Carrying Val End 01/01/2017 06/30/2017 12/31/2017 Paid Am S 196,534 499,483 479.381 S 21,600S 1,498 20,102 17,643 21,600 K Pre 4 of 9 Next > search Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entries to record the first two interest payments. General Journal Debit Credit 71Jun 30,2017 Bond interest expense 19,653 1,947 Cash 21,600 2 Dec 31, 2017 Bond interest expense 19,653 1,947 Premium on bonds payable Cash 21,600 KPrev 4 of 9 Next arch flow/con htm fective Interest Amortization Help Save & Ex Chec Complete this question by entering your answers in the tabs below. of the remaining cash flows for these bonds as of December 31 Use the market rate at issuance to compute the present value 2019. (Round table values to 4 decimal places, and use rounded values in all calculations.) on: Par ( Required 3