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please help Problem 10-9AB Effective Interest: Amortization of bond premium LO P6 Elis Company issues 8.5%, five-year bonds dated January 1,2019 , with a $490.000
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Problem 10-9AB Effective Interest: Amortization of bond premium LO P6 Elis Company issues 8.5%, five-year bonds dated January 1,2019 , with a $490.000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $542,250, The annual market rate is 6% on the issue date. 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: Complete this question by entering your answers in the tabs below. Compute the total bond interest expense over the bonds' life. Prepare an effective interest amortization table for the bonds' life. Journal entry worksheet Record the first interest payment on June 30, 2019. Note: Enter debits before credits. Record the second interest payment on December 31,2019. Note: Enter debits before credits Step by Step Solution
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