On January 1, 2021, Bradley Recreational Products issued $100,000, 12%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $94,029 to yield an annual return of 14%. (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, 2020, by each of the two approaches.
5. Assuming the market rate is still 14%, what price would a second investor pay the first investor on June 30, 2020, for $14,000 of the bonds?
Solved
Show answers
More tips
- F Family and Home When and how to start introducing solid foods to your baby?...
- C Computers and Internet Keep Your Mouse Pad Clean: The Right Way to Clean It?...
- F Food and Cooking Homemade French Fries: The Ultimate Guide...
- F Food and Cooking Red Caviar: How to Choose the Best?...
- C Computers and Internet Clearing Cache: How to Speed Up Your Browser...
- S Style and Beauty How are artificial nails removed?...
- S Style and Beauty Secrets of Tying a Pareo: 5 Ways...
- F Food and Cooking Everything You Need to Know About Pasta...
Answers on questions: Business
- B Business “We tax what we want less of and we subsidize what we want more of.” How does the government implement this rule? What is an example you have seen of this and how is it implemented?...
- B Business If you added more stocks at random to a portfolio, which of the following is the most accurate statement of what would happen to the standard deviation of the portfolio?...
- B Business Complete the following sentence. Remember to spell correctly. When supply exceeds demand, a market occurs...
- B Business You can find coca-cola products in discount stores, grocery stores, convenience stores, and even vending machines. coca-cola practices distribution with its product lines....
- B Business What did malthus predict about economicâ growth? a. as incomeâ increased, the number of children per family would decrease so that income would remain close to a subsistence...
- B Business On march 25, 1911, a fire in the triangle shirtwaist factory in new york city claimed the lives of 146 female workers. survivors described their attempts to escape through...
- S Spanish Latino and latina definition...
- M Mathematics Substituting the equation x = 4y – 12 into the equation -2y = x – 6 will produce the equation ....
- M Mathematics Aimie is looking for a golf ball that he hit into the air towards a fence surrounding the golf course. The fence has a height of 2 yards and is located at a distance of 120...
- S Spanish Text WK #11 Activities 1-5 pages 80-81...
Ответ: