Problem 14-10AB Effective Interest: Amortization of bond; retiring bonds LO P1, P4, P5, P6

Ike issues $270,000 of 11%, three-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $276,848. Their market rate is 10% at the issue date.

2. Complete the below table to calculate the total bond interest expense to be recognized 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 Journal entry worksheet Record the first interest payment on June 30, 2017. Note: Enter debits before credits. Date General Journal Debit Credit Jun 30, 2017 Record entry Clear entry View general journal Journal entry worksheet