Problem 10-9AB (Algo) Effective Interest: Amortization of bond premium LO P5 Ellis Company issues 6.5%, five-year bonds dated January 1, 2020, with a $500,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $510,666. 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 nearest whole dollar.) Semiannual Period-End Cash Interest Paid Bond Interest Expense Premium Amortization 01/01/2020 Unamortized Premium Carrying Value 10,666 $ 510,666 9,599 X 509,599 X 8,532 X 06/30/2020 12/31/2020 06/30/2021 12/31/2021 06/30/2022 Prepare an effective interest amortization table for the bonds' life. (Round your intermediate and final answers to the nearest whole dollar.) Cash Interest Semiannual Period-End Bond Interest Expense Paid Premium Amortization Carrying Value Unamortized Premium 10,666 9,599 $ 01/01/2020 06/30/2020 510,666 509,599 12/31/2020 8,532 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 06/30/2024 12/31/2024 Total Ellis Company issues 6.5%, five-year bonds dated January 1, 2020, with a $500,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $510,666. 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 the journal entries to record the first two interest payments. No Date General Journal Debit Credit 1 Jun 30, 2020 Bond interest expense Premium on bonds payable Cash OOO 15,183 X 1,067 X 16,250 2 Dec 31, 2020 15,183 X Bond interest expense Premium on bonds payable Cash 1,067 X 16,250