On january 1, 2018, bradley recreational products issued $200,000, 11%, four-year bonds. interest is paid semiannually on june 30 and december 31. the bonds were issued at $193,790 to yield an annual return of 12%. (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 12%, what price would a second investor pay the first investor on june 30, 2020, for $24,000 of the bonds?

At June 30th, 2020 an investor will purchase the bonds at 197,327 which is the present value of the bond at the market rate.

June 30th entries:

interest expense 11,627.4 debit

discount on bonds payable 627.4 credit

cash 11000 credit

/effective method

interest expense 11,776.25 debit

discount on bonds payable 776.25 credit

cash 11000 credit

/straight-line method

the tables are attached to the answer.

Explanation:

effective method

procceds193,790

face value200,000

discount on bonds payable6,210

bond rate0.055 (11% annual / 2 payment per year)

market rate0.06 (12% annual / 2 payment per year)

straight line:

6,210 / 8 (4 years and 2 payment per year) = 776,25‬

client registration system, resource management system, clinical management system, patient information database, common use-system interface

explanation:

answerjointly by the fed and by the behavior of individuals who hold money and of banks in which money is held;