1. Create Input section, enter data, name cells, calculate "convenience calculations".
2. Determine the price of the bond issued on February 1, 2021.
3. Prepare amortization schedule for Sanyal that includes Feb 1, 2021 as first row and rows for each subsequent payment (7/31 and 1/31) to maturity
   • [PLEASE IGNORE INVESTOR SIDE]
4. Prepare journal entries for:
   • 2/1/2021 issuance,
   • 12/31/2024 adjusting accrual entry,
   • 1/31/2025 maturity date [reversing entry, interest entry, bond payment entry]
5. Determine the "hypothetical" price of the same bond if the market rate was:
   • 12%, 15%, 20%, 25%
   • Short answer: How does the increase in market rate affect the price of this bond?
   • Short answer: How does the increase in Federal Funds rate affect the price of bonds in general?

On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1 , with a face amount of $80 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31 . Required: 1. Determine the price of the bonds issued on February 1, 2021 . 2. Prepare amortization schedules that indicate (a) Cromley's effective interest expense and (b) Barnwell's effective interest revenue for each interest period during the term to maturity. 3. Prepare the journal entries to record (a) the issuance of the bonds by Cromley and (b) 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. On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1 , with a face amount of $80 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31 . Required: 1. Determine the price of the bonds issued on February 1, 2021 . 2. Prepare amortization schedules that indicate (a) Cromley's effective interest expense and (b) Barnwell's effective interest revenue for each interest period during the term to maturity. 3. Prepare the journal entries to record (a) the issuance of the bonds by Cromley and (b) 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