Question
On January 1, 2016, Bradley Recreational Products issued $100,000, 13%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were
On January 1, 2016, Bradley 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%. (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.
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