Ripkin Company issues 9%, five year bonds dated January 1, 2013, 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.