Problem 10-9AB (Algo) Effective Interest: Amortization of bond premium LO P5 Ellis Company issues 7.0%, five-year bonds dated January 1, 2020, with a $580,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $604,741. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the total bond interest expense over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: 10 payments 20,300 $ 203,000 Par value at maturity 580,000 Total repaid 783,000 Less amount borrowed (604,741) Total bond interest expense 178,259 of $ Roquired Required 2 > Problem 10-9AB (Algo) Effective Interest: Amortization of bond premium LO P5 Ellis Company issues 7.0%, five-year bonds dated January 1, 2020, with a $580,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $604,741. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. $ Required 1 Required 2 Required 3 Prepare an effective interest amortization table for the bonds' life. (Round your intermediate and final answers to the nea Semiannual Period-End Cash Interest Bond Interest Premium Unamortized Pald Expense Amortization Premium Carrying Value 01/01/2020 24,741 604,741 06/30/2020 $ 20,300 17,826 601,264 12/31/2020 20,300 2,474 06/30/2021 2,474 12/31/2021 2,474 06/30/2022 2,474 12/31/2022 2,474 06/30/2023 2,474 x 12/31/2023 2,474 06/30/2024 12/31/2024 Total