Refer to the bond details in Problem 10-3A.

Required:

1. Compute the total bond interest expense over the bonds' life.

2. Prepare an effective interest amortization table like the one in Exhibit 10B.2 for the bonds' life.

3. Prepare the journal entries to record the first two interest payments.

Pimcipal. These arouns are STIUWIII LOU value after deducting the amortized premium in column C from the prope shows the premium's reduction by periodic amortization. olumn C from the prior period's carrying value. Columul D EXHIBIT 10B.2 Effective Interest Amortization of Bond Premium (E) $103.600 $102.765 5101,888 $100.967 bonas: $100,000 Par Value Semiannual Interest Payments, Iwo-year LITE b% Semiannual Contract Rate, 4.9851% Semiannual Market Rate (B) (C) (D) Cash Bond Semiannual Interest Interest Premium Unamortized Interest Paid Expense Amortization Premium Period-End 6% x $100,000 4.9851% x Prior (E) (A)--(B) Prior (D)-(C) 12/31/2019 $3,600 6/30/2020 $ 6,000 $ 5,165 $ 835 2,765 12/31/2020 6,000 5,123 877 1,888 6/30/2021 6,000 5,079 921 967 12/31/2021 6,000 5,033 967 $24,000 $20,400 $3,600 (0) Carrying Value $100,000+ (D) $103,600 102,765 101,888 100,967 Carrying value $100,000 100,000 12/312019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 Bonds Payable 12/31/2019 100,000 6/30/2020 12/31/2020 6/30/2021 Column (A) is the par value ($100,000) multiplied by the semiannual contract rate (6%). Column (B) is the prior period's carrying value multiplied by the semiannual market rate (4.9851%). Column (C) is the difference between interest paid and bond interest expense, or ((A) - (B)]. Column (D) is the prior period's unamortized premium less the current period's premium amortization. Column (E) is the par value plus unamortized premium, or ($100,000+ (D))