Problem 10-9AB Effective Interest: Amortization of bond premium; computing bond price LO P1, P6 points Ellis issues 7.5%, five-year bonds dated January 1, 2018, with a $590,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $627,750. The annual market rate is 6% on the issue date. (Table B.1, Table B.2. Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) eBook 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. 4. Use the market rate at issuance to compute the present value of the remaining cash flows for these bonds as of December 31, 2020. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Compute the total bond interest expense over the bonds' life. 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 S 0 Problem 10-9AB Effective Interest: Amortization of bond premium; computing bond price LO P1, P6 points Ellis issues 7,5%, five-year bonds dated January 1, 2018, with a $590,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $627.750. The annual market rate is 6% on the issue date. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) eBook 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. 4. Use the market rate at issuance to compute the present value of the remaining cash flows for these bonds as of December 31, 2020. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Prepare an effective interest amortization table for the bonds' life. Premium Amortization Unamortized Premium Carrying Value Semiannual Interest Cash Interest Bond Interest Period-End Paid Expense 01/01/2018 06/30/2018 12/31/2018 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Required 1 Required 2 8 Required 3 Required 4 Prepare the journal entries to record the first two interest payments. points Vicw transaction list eBook Journal entry worksheet Print Record the first Interest payment on June 30, 2018. References Note: Enter debits before credits. General Journal Debit Credit Date Jun 30, 2018 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Required 4 Prepare the journal entries to record the first two interest payments. points View transaction list eBook Journal entry worksheet 2 Print Record the second interest payment on December 31, 2018. References Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2018 Record entry Clear entry View general Journal Problem 10-9AB Effective Interest: Amortization of bond premium; computing bond price LO P1, P6 Ellis issues 7.5%, five-year bonds dated January 1, 2018, with a $590,000 par value. The bonds pay interest on June 30 and Decembe 31 and are issued at a price of $627,750. The annual market rate is 6% on the issue date. (Table B.1, Table B.2. Table B.3, and Table B.4 (Use appropriate factor(s) from the tables provided.) points eBook 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. 4. Use the market rate at issuance to compute the present value of the remaining cash flows for these bonds as of December 31, 2020. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Use the market rate at issuance to compute the present value of the remaining cash flows for these bonds as of December 31, 2020. (Round table values to 4 decimal places, and use rounded values in all calculations.) Table values are based on: n = Cash Flow Table Value Amount Present Value Par (maturity) value Interest (annuity) Price of bonds