On january 1, 2013, bradley recreational products issued $100,000, 9%, four-year bonds. interest is paid semi annually 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, 2015, by each of the two approaches.