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Chec Problem 14-5 Issuer and investor: effective interest, amortization schedule: adjusting entries (L014-2] On February 2018. Cromley Motor Products sued bonds, dated February with a
Chec Problem 14-5 Issuer and investor: effective interest, amortization schedule: adjusting entries (L014-2] On February 2018. Cromley Motor Products sued bonds, dated February with a face amount of $50 million The bonds mature on January 31 2022 14 years) The marketyreld for bonds of Similar risk and maturity was interest is paid semiannualy on July 31 and January 31 Barnwell Industries acquired $50.000 of the bonds as a long term investment. The fiscal years of both firme end December 31 . of Si, Via SLEVA O SUPVA SIFAD and PVADLO SU (Use appropriate factors) from the tables provided) YA CT SI POATE 000 of the bench as a Forted matunywane Required: 1. Determine the price of the bonds issued on February 1 2018 26. Prepare amortization schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity 2-b. Prepare amonization 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 Cromley and Barwels investment on February 1, 2018 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31 2020. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 R eq3 Reg 4 Cromley Req 4 Barwell Determine the price of the bonds issued on February 1, 2018. (Enter your answer in whole dollar Price of the bonds Req2A)
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