When Patey Pontoons Issued 6% bonds on January 1, 2021, with a face amount of $600,000,...

 

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When Patey Pontoons Issued 6% bonds on January 1, 2021, with a face amount of $600,000, the market yleld for bonds of similar risk and maturity was 7%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (EV of $1, PV of $1. FVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.). Required: 1. Determine the price of the bonds at January 1, 2021 2. Prepare the journal entry to record their Issuance by Patey on January 1, 2021. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2021. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2021? (Ignore income taxes) 7. Prepare the appropriate journal entries at maturity on December 31, 2024 Complete this question by entering your answers in the tabs below. Req 1 Req 1 Reg 5 and 6 Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest whole dollar) Table values are based on: " Cash Flow Interest Principal = Req 2 Price of bonds 8 3.5% Req 3 Amount Present Value S 465,351 S 600,000 S 600,000 C Req 7 When Patey Pontoons Issued 6% bonds on January 1, 2021, with a face amount of $600,000, the market yleld for bonds of similar risk and maturity was 7%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (EV of $1, PV of $1. FVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.). Required: 1. Determine the price of the bonds at January 1, 2021 2. Prepare the journal entry to record their Issuance by Patey on January 1, 2021. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2021. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2021? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2021? (Ignore income taxes) 7. Prepare the appropriate journal entries at maturity on December 31, 2024 Complete this question by entering your answers in the tabs below. Req 1 Req 1 Reg 5 and 6 Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest whole dollar) Table values are based on: " Cash Flow Interest Principal = Req 2 Price of bonds 8 3.5% Req 3 Amount Present Value S 465,351 S 600,000 S 600,000 C Req 7

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