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 bonds life.
2. Prepare a straight line amortization table like Exhibit 14.11 for the bonds life.
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3. Prepare the journal entries to record the first two interestpayments.