14-3

3. What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2016? In which section(s) should the amount(s) appear? On January 1, 2016, Bradley Recreational Products issued $100,000, 9% four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 to yield an annual return of 10%. P 14-3 Straight-ine and effective 31. The bonds were issu interest compared Required .LO14-2 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, 2018, by each of the two approaches 4. Explain why the pattern of interest differs between the two methods. 5. Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2018, for $10,000 of the bonds? On January 1, 2016, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31 Portions of the bond amortization schedule appear below: P 14-4 Bond amortization schedule Cash Effective Increase In LO14-2 Balance 331,364 331,932 11,364 11,932 12.528 320,000 6 638.637 320.000 6 663097 e here to search