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 the issue date.

P10-4A Use the data from the problem in the textbook and follow the directions givern below. Round answers to the nearest dollar. You must use a journal form to record the transactions in order to receive credit. 1. Record the journal entry to issue the bonds on January 1, 2015. 2. a. Record the journal entry to pay the semi-annual interest payment and amortize the premium on June 30, 2015. b. Record the journal entry to pay the semi-annual interest payment and amortize the premium on Dec. 31, 2015. 3. a. Record the journal entry to pay the semi-annual interest payment and amortize the premium on June 30, 2016. b. Record the journal entry to pay the semi-annual interest payment and amortize the premium on Dec. 31, 2016. 4. On September 1, 2018, Ellis calls the bonds at 99. Record the journal entry to call the bonds. What is the total interest expense for the bonds for: a. One full year? b. The entire five year life of the bond? (if the bond had been held until 5. maturity) What is the carrying value of the bonds on: a. December 31, 2015? b. December 31, 2016? 6