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On January 1,2024, Reyes Recreational Products issued $100,000,9%, four-year bonds. Interest is paid semiannually on...

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Accounting

On January 1,2024, Reyes Recreational Products issued $100,000,9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 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 $10,000 of the bonds?

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