Problem 14-3 (Algo) Straight-line and effective interest compared [LO14-2] On January 1, 2024, Reyes Recreational Products...

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Problem 14-3 (Algo) Straight-line and effective interest compared [LO14-2] On January 1, 2024, Reyes Recreational Products issued $100,000, 13%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $97,014 to yield an annual return of 14%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest expense on June 30, 2026, by each of the two approaches. 5. Assuming the market rate is still 14%, what price would a second investor pay the first investor on June 30, 2026, for $14,000 of the bonds? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 5 Assuming the market rate is still 14%, what price would a second investor pay the first investor on June 30, 2026, for $14,000 of the bonds? Note: Round your intermediate calculations and final answer to the nearest whole dollar. Price of the bonds $ 13,843 x < Required 3 Required 5 > Problem 14-3 (Algo) Straight-line and effective interest compared [LO14-2] On January 1, 2024, Reyes Recreational Products issued $100,000, 13%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $97,014 to yield an annual return of 14%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest expense on June 30, 2026, by each of the two approaches. 5. Assuming the market rate is still 14%, what price would a second investor pay the first investor on June 30, 2026, for $14,000 of the bonds? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 5 Assuming the market rate is still 14%, what price would a second investor pay the first investor on June 30, 2026, for $14,000 of the bonds? Note: Round your intermediate calculations and final answer to the nearest whole dollar. Price of the bonds $ 13,843 x < Required 3 Required 5 >