Ellis issues 7.0%, five-year bonds dated January 1, 2017, with a $510,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $531,752. The annual market rate is 6% on the issue date. Required:

1. Complete the below table to calculate 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.

Complete the below table to calculate the total bond interest expense over the bonds' life.

Total bond interest expense over life of bonds:
Amount repaid:
	payments of
Par value at maturity
Total repaid			0
Less amount borrowed
Total bond interest expense			$0

Prepare a straight-line amortization table for the bonds life.

Semiannual Period-End	Unamortized Premium	Carrying Value
01/01/2017
06/30/2017
12/31/2017
06/30/2018
12/31/2018
06/30/2019
12/31/2019
06/30/2020
12/31/2020
06/30/2021
12/31/2021

Record the first interest payment on June 30, 2017.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jun 30, 2017

Record the second interest payment on December 31, 2017.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31, 2017