Prepare a straight-line amortization table for bonds life

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Reference no: EM13793579

Ellis issues 6.5%, five year bonds dated January 1, 2013, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date.

Required

1) Calculate the total bond interest expense over the bond's life.

2) Prepare a straight-line amortization table for the bond's life.

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

Reference no: EM13793579

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