Ike issues $90,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $92,283. When the market rate is 10%.

1. Prepare the January 1 journal entry to record the bonds' issuance.

2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.

3. Prepare an effective interest amortization table for the bonds' first two years

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

2)

3)

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 90,000 90,000 $ 90.000 Cash Interest Bond Interest Paid Expense Premium Amortization Unamortized Premium Carrying Value Semiannual Interest Period-End 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020