On January $1,2024,$ Reyes Recreational Products issued $$100,000,11\%,$ four$-$year bonds. Interest is paid semiannually on June $30$ and December $31.$ The bonds were issued at $$96,895$ to yield an annual return of $12\%.$

Required:

Prepare an amortization schedule that determines interest at the effective interest rate.

Prepare an amortization schedule by the straight$-$line method.

Prepare the journal entries to record interest expense on June $30,2026,$ by each of the two approaches.

Assuming the market rate is still $12\%,$ what price would a second investor pay the first investor on June $30,2026,$ for $$12,000$ 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)$

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Required $1,$Required $5]]$

Prepare an amortization schedule that determines interest at the effective interest rate.

Note: Enter your answers in whole dollars.

$\backslash$table$[[\backslash$table$[[$Payment$],[$Number$]],\backslash$table$[[$Cash$],[$Payment$]],\backslash$table$[[$Effective$],[$Interest$]],\backslash$table$[[$Increase in$],[$Balance$]],$Carrying Value$],[1,,,,],[2,,,,],[3,,,,],[4,,,,],[5,,,,],[6,,,,],[7,,,,],[8,,,,],[$Totals$,$$$,$$$,0,]]$