80.2K

Verified Solution

Link Copied!

On February 1, 2021. Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $50 million. The bonds mature on January 31, 2025 (4 years). The market yleld for bonds of similar risk and maturity was 8%. Interest is paid semiannually on July 31 and January 31, Barnwell Industries acquired 550.000 of the bonds as a long-term investment. The fiscal years of both firms end December 31 (FV of si. PV of $). FVA of $1. PVA of $1. FVAD of S1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds issued on February 1, 2021. 2-a. Prepare amortization schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity 2-b. Prepare amortization schedules that Indicate Bamwell's effective interest revenue for each interest period during the term to maturity 3. Prepare the journal entries to record the issuance of the bonds by Cromley and Bamwell's investment on February 1, 2021 4. Prepare the Joumal entries by both firms to record all subsequent events related to the bonds through January 31, 2023 Complete this question by entering your answers in the tabs below. Red Red 2A Reg 28 Reg Reg Cromley Reg 4 Barwell Determine the price of the bonds issued on February 1, 2021. (Do not round intermediate calculations. Enter your answer in whole dollars.) Price of the bonds Req2A > On February 1, 2021. Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $50 million. The bonds mature on January 31, 2025 14 years). The market yield for bonds of similar risk and maturity was 8% Interest is paid semiannually on July 31 and January 31. Barwell Industries acquired $50,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. (FV of $1. PV of S1, FVA Of SL. PVA S. EVADE 31 and PVAD of $0) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds issued on February 1, 2021. 2a. Prepare amortzation schedules that Indicate Cromley's effective Interest expense for each interest period during the term to maturity 2-5. Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to maturity 3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell's Investment on February 1, 2021. 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023. Complete this question by entering your answers in the tabs below. Regi Red 2A Red 20 Reg 3 Reg 4 Cromley Reg 4 Barnwell Prepare amortization schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity. (Do not round intermediate calculations. Enter your answers in whole dollars.) Payment Number Cash Payment Effective Interest Increase in Balance Outstanding Balance 1 2 3 4 5 7 8 Totals On February 1, 2021 , Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $50 million. The bonds mature on January 31, 2025 (4 years). The market yleld for bonds of similar risk and maturity was 8% Interest is paid semiannually on July 31 and January 31, Barwell Industries acquired $50,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. (FV of si. PV of $1. FVA Of S1, PVA of $1. FVAD of $1 and PVAD of $1] (Use appropriate factors) from the tables provided.) Required: 1. Determine the price of the bonds issued on February 1, 2021 2-a. Prepare amortization schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity 2b. Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to 3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell's Investment on February 1, 2021. 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023. maturity Complete this question by entering your answers in the tabs below. Red Red 2A Req 25 Reg 3 Reg 4 Cromley Rug Bamwel Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to maturity. (Do not round intermediate calculations. Enter your answers in whole dollars.) Payment Number Cash Payment Effective Interest Increase in Balance Outstanding Balance 1 2 3 4 5 0 7 TOMS Record the issuance of the bonds by Cromley, New General Journal Date February 01, 2021 Debit Credit Record entry Ceny On February 1 2021. Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $50 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 8% Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $50,000 of the bonds as a long-term Investment. The fiscal years of both firms and December 31 EV of $1. PV of $1. FVA of $1. PVA of $1. FVAD S1 and PVAD of $1) (Use appropriate factors from the tables provided) Required: 1. Determine the price of the bonds issued on February 1, 2021 2. Prepare amoruzation schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity 2b. Prepare amortization schedules that indicate Banwells affective interest revenue for each interest period during the term to maturity 3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barwell's Investment on February 1 2021 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2023. Complete this question by entering your answers in the tabs below. Rigt Reg 2A Re28 Rega Req 4 Cronde Reg 4 Bar Prepare the journal entries by Cromley to record all subsequent events related to the bonds through January 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round Intermediate calculations. Enter your answers in whole dollars.) View transactions Journal entry worksheet 1 2 3 4 5 > Record the payment of interest for Cromley Company Nedets before General Journal Date July 31, 2021 Debit Credit Record entry Chareny View our On February 1, 2021. Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $50 million. The bonds mature on January 31, 2025 (4 years). The market yold for bonds of similar risk and maturity was 8% Interest is paid semiannually on July 31 and January 31. Barwell Industries acquired $50,000 of the bonds as a long-term investment. The fiscal years of both firms and December 31. (FV of $1. Py of $1. EVA $1. PVA of $1. FVAD of S1 and PVAD of S1) (Use appropriate factor(s) from the tables provided) Required: 1. Determine the price of the bonds issued on February 1, 2021. 24. Prepare amortization schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity 2.6. Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to 3. Prepare the journal entites to record the issuance of the bonds by Cromley and Barnwell's investment on February 1, 2021 4. Prepare the journal entries by both firms to record al subsequent events related to the bonds through January 31, 2023 Complete this question by entering your answers in the tabs below. Reg 1 2 Reg 28 Ren Recomie Regt Bar Prepare the journal entries by Bamwell to record all subsequent events related to the bands through January 31, 2023. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations Enter your newers in whole dolla.) View transactions Journal entry worksheet 1 2 3 4 3 0 > Record the receipt of interest for Barwell Company Non General Journal Date July 31,2021 Debit Credit acord entry Chandry

Answer & Explanation Solved by verified expert

See Answer