Problem $14-5($Algo$)$ Issuer and investor; effective interest; amortization schedule; adjusting entries $[$LO$14-2]$

On February $1,2024,$ Sanyal Motor Products issued $9\%$ bonds, dated February $1,$ with a face amount of $$80$ million.

The bonds mature on January $31,2028($four 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 $1,2024.$

$2-$a$.$ Prepare amortization schedules that indicate Sanyal$$s effective interest expense for each interest period during the term to maturity.

$2-$b$.$ 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 Sanyal and Barnwell$$s investment on February $1,2024.$

$4.$ Prepare the journal entries by both firms to record all events related to the bonds through January $31,2026.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$