Question
Problem 14-3A Straight-Line: Amortization of bond premium LO P3 Ellis Company issues 9.5%, five-year bonds dated January 1, 2019, with a $560,000 par value. The
Problem 14-3A Straight-Line: Amortization of bond premium LO P3 Ellis Company issues 9.5%, five-year bonds dated January 1, 2019, with a $560,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $594,066. The annual market rate is 8% on the issue date. Required: 1. Complete the below table to calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds life. 3. Prepare the journal entries to record the first two interest payments.
Amount Repaid:___ payments of __
Per Maturity Level:___
Total Repaid:___
Less Amount Borrowed___
Total Bond Interest Exp:
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