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.

5.	Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2018, for $18,000 of the bonds

Problem 14-3 Straight-line and effective interest compared [LO14-2] On January 1, 2016, Bradley Recreational Products issued $180,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $174,183 to yield an annual return of 10%. (FV of $1, PV of $1 FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 ) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate Payment NumberPayment Effective Interest Cash Increase in Carrying Value Balance 2 4 5 6 Totals S