Question
On January 1, 2016, Bradley Recreational Products issued $130,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were
On January 1, 2016, Bradley Recreational Products issued $130,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $125,799 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.) |
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1. | Prepare an amortization schedule that determines interest at the effective interest rate. |
2. | Prepare an amortization schedule by the straight-line method. |
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3. | Prepare the journal entries to record interest expense on June 30, 2018, by each of the two approaches. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
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5. | Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2018, for $13,000 of the bonds? |
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pls complete the answers
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