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Ripkin Company issues 9%, five-year bonds dated January 1, 2017, with a $320,000 par value....

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Question

Accounting

Ripkin Company issues 9%, five-year bonds dated January 1, 2017, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their 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 like Exhibit 14.11 for the bonds life.

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

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