Question
On January 1, 2016, Bradley Recreational Products issued $200,000, 12%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were
On January 1, 2016, Bradley Recreational Products issued $200,000, 12%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $188,058 to yield an annual return of 14%
Prepare an amortization schedule that determines interest at the effective interest rate.
Payment Number | Cash Payment | Effective Interest | Increase in Balance | Carrying Value |
1 | ||||
2 |
Prepare an amortization schedule by the straight-line method.
Payment Number | Cash Payment | Recorded Interest | Increase in Balance | Carrying Value |
1 | ||||
2 |
3. | Prepare the journal entries to record interest expense on June 30, 2018, by each of the two approaches
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