please do not skip all for this problem

On February 1, 2016, Cromley Motor Products issued 10% bonds, dated February 1, with a face amount of $90 million. The bonds mature on January 31, 2020 (4 years). The market yield for bonds of similar risk and maturity was 12%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $90,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1.

Determine the price of the bonds issued on February 1, 2016. (Enter your answer in whole dollars.)

	Price of the bonds

2.1	Prepare amortization schedules that indicate Cromleys effective interest expense for each interest period during the term to maturity. (Enter your answers in whole dollars.)

Payment Number	Cash Payment	Effective Interest	Increase in Balance	Outstanding Balance
1	$4,500,000
2	4,500,000
3
4
5
6
7
8
Totals	$9,000,000	$0	$0

2.

Prepare amortization schedules that indicate Barnwells effective interest revenue for each interest period during the term to maturity. (Enter your answers in whole dollars.)

Payment Number	Cash Payment	Effective Interest	Increase in Balance	Outstanding Balance
1
2
3
4
5
6
7
8
Totals	$0	$0	$0

3.	Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwells investment on February 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

1

Record the issuance of the bonds by Cromley.

2

Record the Bond investment by Barnwell.

4.

Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) 1 Record the interest expense of Cromley company. 2 Record the interest expense of Cromley company. 3 Record the interest expense of Cromley company. 4 Record the interest expense of Cromley company. 5 Record the interest expense of Cromley company. 6 Record the interest expense of Cromley company. and also for Barnwell Industries 1 Record cash received of Barnwell company. 2 Record the interest receivable of Barnwell company. 3 Record cash received of Barnwell company. 4 Record cash received of Barnwell company. 5 Record the interest receivable of Barnwell company. 6 Record cash received of Barnwell company.