Question: Ripkin Company issues 9%, five-year bonds dated January 1, 2016, with a $320,000 par value. The bonds pay interest on June 30 and December 31

Ripkin Company issues 9%, five-year bonds dated January 1, 2016, 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. Compute the total bond interest expense over the bonds' life.

2. Prepare a straight-line amortization table like Exhibit 10.11 for the bonds' life.

3. Prepare the journal entries to record the first two interest payments?

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