On January 1, 2018, 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 $1and 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. 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest expense on June 30, 2020, by each of the two approaches. 5. Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2020, for $13,000 of the bonds?

Complete this question by entering your answers in the tabs below. Required 1 Required 2 E Required 3Required 5 Prepare an amortization schedule by the straight-line method. Payment Recorded Increase in Carrying Value Balance Cash Number Payment Interest 2 3 4 7 Totals$ 0 Required 1 Required 3 Required 1 Required 2 Required 3Required 5 Prepare the journal entries to record interest expense on June 30, 2020, 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. Enter your answers in whole dollars.) View transaction list View journal entry worksheet No Event General Journal Debit Credit Interest expense Discount on notes payable Cash 2 2 No journal entry required Discount on bonds payable Cash Required 2 Required 5>