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Prepare straight-line amortization table for the bonds life

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Reference no: EM133159239

Question - Ellis Company issues 7.0%, five-year bonds dated January 1, 2021, with a $450,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $469,193. The annual market rate is 6% on the issue date.

Required -

1. Calculate the total bond interest expense over the bonds' life.

2. Prepare straight-line amortization table for the bonds' life.

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

Reference no: EM133159239

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