Problem $14-3($Algo$)$ Straight$-$line and effective interest compared $[$L$014-2]$

On January $1,2024,$ Reyes Recreational Products issued $$150,000,12\%,$ four$-$year bonds. Interest is paid semiannually on June $30$ and

December $31.$ The bonds were issued at $$141,044$ to yield an annual return of $14\%.$

Required:

Prepare an amortization schedule that determines interest at the effective interest rate.

Prepare an amortization schedule by the straight$-$line method.

Prepare the journal entries to record interest expense on June $30,2026,$ by each of the two approaches.

Assuming the market rate is still $14\%,$ what price would a second investor pay the first investor on June $30,2026,$ for $$21,000$ 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)$

Complete this question by entering your answers in the tabs below.

Assuming the market rate is still $14\%,$ what price would a second investor pay the first investor on June $30,2026,$ for

$$21,000$ of the bonds?

Note: Round your intermediate calculations and final answer to the nearest whole dollar.