When Patey Pontoons issued bonds on January with a face amount of $ the market yield for bonds of similar risk and maturity was The bonds mature December years Interest is paid semiannually on June and December
Required:
Determine the price of the bonds at January
Prepare the journal entry to record their issuance by Patey on January
Prepare an amortization schedule that determines interest at the effective rate each period.
Prepare the journal entry to record interest on June
What is the amount related to the bonds that Patey will report in its balance sheet at December
What is the amount related to the bonds that Patey will report in its income statement for the year ended December Ignore income taxes.
Prepare the appropriate journal entries at maturity on December
