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In: AccountingOn February 1, 2018, Cromley Motor Products issued 6% bonds,dated February 1, with a face...On February 1, 2018, Cromley Motor Products issued 6% bonds,dated February 1, with a face amount of $50 million. The bondsmature on January 31, 2022 (4 years). The market yield for bonds ofsimilar risk and maturity was 8%. Interest is paid semiannually onJuly 31 and January 31. Barnwell Industries acquired $50,000 of thebonds as a long-term investment. The fiscal years of both firms endDecember 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1and PVAD of $1)Required:1. Determine the price of the bonds issued on February 1,2018.2-a. Prepare amortization schedules that indicateCromley’s effective interest expense for each interest periodduring the term to maturity.2-b. Prepare amortization schedules that indicateBarnwell’s effective interest revenue for each interest periodduring the term to maturity.3. Prepare the journal entries to record theissuance of the bonds by Cromley and Barnwell’s investment onFebruary 1, 2018.4. Prepare the journal entries by both firms torecord all subsequent events related to the bonds through January31, 2020.