Question: Exhibit 14B.1 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

Exhibit 14B.1 Ellis issues 6.5%, five-year bonds dated January 1. 2013, with a $250,000 par value. The bonds pay interest on June 30

Exhibit 14B.1

and December 31 and are issued at a price of $255,333. The

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. Preapre the January 1,2013, journal entry to record the bonds' issuance. Determine the total bond interest expense to be recognized over the bonds' life. Preapre an effective interest amortization table like the one in Exhibit 14B.1 for thw bonds' first two years. Preapre the journal entries to record the first two interest payments

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