Question: Chapter 14 (1 of 3) Written Problem #2 (10 points) Patey Pontoons issued 6% bonds, dated January 1, with a face amount of $600,000

Chapter 14 (1 of 3) Written Problem #2 (10 points) Patey Pontoons

Chapter 14 (1 of 3) Written Problem #2 (10 points) Patey Pontoons issued 6% bonds, dated January 1, with a face amount of $600,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). The market rate of interest for similar issues was 7%. Interest is paid semiannually on June 30 and December 31. Patey Pontoons uses the straight-line method. Required: 1) Determine the price of the bonds at January 1, 2021 2) Prepare the journal entry to record their issuance by Patey Pontoons on January 1, 2021. 3) Prepare the journal entry to record interest on June 30, 2021. 4) Prepare the journal entry to record interest on December 31, 2023.

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