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On January 1, 2024, Reyes Recreational Products issued $140,000,8%, four-year bonds. Interest is paid semiannually on June 30 and December 31 . The bonds were
On January 1, 2024, Reyes Recreational Products issued $140,000,8%, four-year bonds. Interest is paid semiannually on June 30 and December 31 . The bonds were issued at $130,952 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, 2026, 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 30,2026 , for $14,000 of the bonds? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and Complete this question by entering your answers in the tabs below. Prepare an amortization schedule that determines interest at the effective interest rate. Note: Enter your answers in whole dollars
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