Question
on January 1 2018, bradley recreational products issues $100000, 9% four year bonds. interest is paid semiannually on june 30 and december 31. the bonds
on January 1 2018, bradley recreational products issues $100000, 9% four year bonds. interest is paid semiannually on june 30 and december 31. the bonds were issued at $96,768 to yield an annual return of 10% 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. 4-explain why the pattern of interest differs between the two methods. 5-assuming the market rate is still 10%, what price would a second investor pay the first investor on june 30 2020 for $10,000 of the bonds?
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