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Problem 14-10AB (Algo) Effective Interest: Amortization of bond premium LO P5 Elis Company issues 9.0%, five-year bonds dated January 1, 2021, with a $480,000 par
Problem 14-10AB (Algo) Effective Interest: Amortization of bond premium LO P5 Elis Company issues 9.0%, five-year bonds dated January 1, 2021, with a $480,000 par value. The bonds pay Interest on June 30 and December 31 and are issued at a price of $489,595. The annual market rate is 8.5% 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. Required 1 Required 2 Required 3 Prepare an effective interest amortization table for the bonds' life. (Round your intermediate and final answers to the neares dollar.) Semiannual Interest Period- End 01/01/2021 Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value s 489,595 06/30/2021 S 21,600 12/31/2021 21,600 06/30/2022 12/31/2022 06/30/2023 12/31/2023 06/30/2024 12/31/2024 06/30/2025 12/31/2025 Total
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