Question: Ellis issues 6.5%, five year bonds dated January 1, 2015, with a $250,000 par value. The bonds pay interest on June 30 and December 31

Ellis issues 6.5%, five year bonds dated January 1, 2015, 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 issue date.

1. Caluculate 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.

Please show all work! Thank you so much!

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