Ellis Company issues 9.0%, five-year bonds dated January 1, 2020, with a $410,000 par value....
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Ellis Company issues 9.0%, five-year bonds dated January 1, 2020, with a $410,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $426,627. The annual market rate is 8% on the issue date. Required: 1. 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.
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