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On January 1 , 2 0 2 4 , Reyes Recreational Products issued $ 1 5 0 , 0 0 0 , 1 2 %
On January Reyes Recreational Products issued $ fouryear bonds. Interest is paid semiannually on June and
December The bonds were issued at $ to yield an annual return of
Required:
Prepare an amortization schedule that determines interest at the effective interest rate.
Prepare an amortization schedule by the straightline method.
Prepare the journal entries to record interest expense on June: Assessment Tool iFrame o approaches.
Assuming the market rate is still what price would a second investor pay the first investor on June for $ of the
bonds?
Note: Use Excel, or a financial calculator.
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