Ellis issues 6.5%, five- year bonds dated January 1, 2013, with a $ 250,000 par value. The

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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 bondsâ€™ life.

2. Prepare a straight- line amortization table like Exhibit 14.11 for the bondsâ€™ life.

Ellis issues 6.5%, five- year bonds dated January 1, 2013,

3. Prepare the journal entries to record the first two interestpayments.

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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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Question Posted: Nov 26, 2013 09:58 AM

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Ellis issues 6.5%, five- year bonds dated January 1, 2013, with a $ 250,000 par value. The

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Bonds issued par value Annual interest ELLIS Maturity in years Iss...View the full answer

Fundamental accounting principle

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