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Please help with this question below Problem 14-3 (Algo) Straight-line and effective interest compared [LO14-2] On January 1, 2024, Reyes Recreational Products issued $150,000,9%, four-year
Please help with this question below
Problem 14-3 (Algo) Straight-line and effective interest compared [LO14-2] On January 1, 2024, Reyes Recreational Products issued $150,000,9%, four-year bonds. Interest is paid semiannually on June 30 and December 31 . The bonds were issued at $136,028 to yield an annual return of 12%. 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 12%, what price would a second investor pay the first investor on June 30,2026 , for $18,000 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 PVAD of $1 ) Answer is not complete. Complete this question by entering your answers in the tabs below. Assuming the market rate is still 12%, what price would a second investor pay the first investor on June 30,2026 , for $18,000 of the bonds? Note: Round your intermediate calculations and final answer to the nearest whole dollar. On January 1,2024 , Reyes Recreational Products issued $150,000,9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $136,028 to yield an annual return of 12%. 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 12%, what price would a second investor pay the first investor on June 30,2026 , for $18,000 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 PVAD of \$1) Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare an amortization schedule by the straight-line method. Note: Do not round intermediate calculations. Enter your answers in whole dollarsStep by Step Solution
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