Problem - Jules issues a 4.5%. five-year bonds dated January 1, 2009, with a $230,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $235,160. The annual market rate is 4% on the issue date.
Required -
1. 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.