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Please help me fix what is wrong with questions 2 and 3 a Ellis Company issues 8.0%, five-year bonds dated January 1, 2020, with a
Please help me fix what is wrong with questions 2 and 3
a Ellis Company issues 8.0%, five-year bonds dated January 1, 2020, with a $530,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $575,210. The annual market rate is 6% on the issue date. Required: 1. Calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the total bond interest expense over the bonds' life. Total bond interest expense over life of bonds: Amount repaid 10 payments of $ 21,200 $ 212,000 Par value at maturity 530,000 Total repaid 742,000 Less amount borrowed 575,210 Total bond interest expense $ 166,790 Required 1 Required 2 Required 3 Prepare a straight-line amortization table for the bonds' life. (Round your intermediate and final answers to the nearest whole dollar) Semiannual Period-End 01/01/2020 06/30/2020 12/31/2020 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 06/30/2024 12/31/2024 Unamortized Premium $ 45,210 $ 41,266 % 37,204 X 33,020 X 28,711 24,272 X 19,701 X 14,992 % 10,141 5,620 Carrying Value 575,210 571,266 X 567,204 563,020 558,711 554,272 549,701 544,992 540,141 535,620 530,000 0 Required 1 Required 2 Required 3 Prepare the journal entries to record the first two interest payments. No Debit Credit Date June 30 1 General Journal Bond interest expense Premium on bonds payable Cash 17,256 3,944 % 21,200 2 December 31 Bond interest expense Premium on bonds payable Cash >>> 17,138 % 4,062 212,000Step by Step Solution
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