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Prepare straight-line amortization table for the bonds life

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Reference no: EM133171198

Question - Ellis Company issues 8.5%, five-year bonds dated January 1, 2019, with a $540,000 par value. The bonds pay interest on June 30 and points December 31 and are issued at a price of $597,579. The annual market rate is 6% on the issue date.

Required -

1. Complete the 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.

Reference no: EM133171198

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