Ellis issues 9.5%, five-year bonds dated January 1, 2013, with a $470,000 par value. The bonds pay interest on June 30

| December 6, 2017

Ellis issues 9.5%, five-year bonds dated January 1, 2013, with a $470,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $498,591. The annual market rate is 8% on the issue date.1. Complete the below 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.

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