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Bond premium amortization and finding the present value of remaining cash flows LO 6 Calculations Marketing Inc. issued 9.0% bonds with a par value of $360,000 and a five-year life on January 1, 2023, for $374,600. The bonds pay interest on June 30 and December 31. The market interest rate was 8% on the original issue date.
Required:
1. Calculate the total bond interest expense over the life of the bonds.
2. Prepare an amortization table using the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
3. Show the journal entries that Calculations Marketing Inc. would make to record the first two interest payments assuming a December 31 year-end. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
4. Use the original market interest rate to calculate the present value of the remaining cash flows for these bonds as of December 31, 2025. Compare your answer with the amount shown on the amortization table as the balance for that date. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

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