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On January 1, 2024, Reyes Recreational Products issued $100,000, 13%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were
On January 1, 2024, Reyes Recreational Products issued $100,000, 13%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $97,014 to yield an annual return of 14%. 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, 2026, by each of the two approaches.
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