On January 1, 2018, Bradley Recreational Products issued $200,000, 8%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $187,074 to yield an annual return of 10%. (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD of $1)

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 $20,000 of the bonds?

Required 1 Required 2 Required 3 Required 5 Prepare an amortization schedule that determines interest at the effective intere Payment Cash Payment Effective Increase in Number Interest Balance Carrying Value 2 6 7 8 Totals 0 0 S 0Prepare an amortization schedule by the straight-line method. Payment Recorded Increase in Number Cash Payment Interest Balance Carrying Value 7 CO Totals $ 0 $ 0 0Journal entry worksheet 2 Record interest expense on June 30, 2020, by the effective interest method. Note: Enter debits before credits. Event General Journal Debit CreditJournal entry worksheet A LLLL 2 Record interest expense on June 30, 2020, by the straight-line method. Note: Enter debits before credits. Event General Journal Debit Credit 2Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 5 Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2020, for $20,000 of the bonds? (Round your intermediate calculation and final answer to whole dollars.) Price of the bonds