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On January 1, 2021, Bradley Recreational Products issued $150,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were
On January 1, 2021, Bradley Recreational Products issued $150,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $145,153 to yield an annual return of 10%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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, 2023, 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, 2023, for $15,000 of the bonds? Required 1 Required 2 Required 3 Required 5 Prepare an amortization schedule that determines interest at the effective i Payment Number Cash Payment Effective Interest Increase in Balance Carrying Value 8 Totals 0 $ 0 $ Required 1 Required 2 Required 3 Required 5 Prepare an amortization schedule by the straight-line method. (Do not round intermediate calc whole dollars.) Payment Number Cash Payment Recorded Interest Increase in Balance " Carrying Value $ 145,153 8 Totals $ 0 $ 0 $ 0 Required 1 Required 3 > Required 1 Required 2 Required 3 Required 5 Prepare the journal entries to record interest expense on June 30, 2023, by each of the two approaches. (If no entry is required for : transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list View journal entry worksheet Event General Journal Debit Credit No 1 Interest expense Discount on bonds payable Bonds payable 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 $15,000 of the bonds? (Round your intermediate calculation and final answer to whole dollars.) Price of the bonds
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