Problem 10-9AB Effective Interest: Amortization of bond premium LO P6 Ellis Company issues 8.0%, five-year bonds…

Problem 10-9AB Effective Interest: Amortization of bond premium
LO P6 Ellis Company issues 8.0%, five-year bonds dated January 1,
2019, with a $600,000 par value. The bonds pay interest on June 30
and December 31 and are issued at a price of $651,185. The annual
market rate is 6% on the issue date. Required:
1. Compute the total bond interest expense over the bonds’
life.
2. Prepare an effective interest amortization table for the
bonds’ life.
3. Prepare the journal entries to record the first two interest
payments.