Exercise $14-9($Static$)$ Issuance of bonds; effective interest; amortization schedule; financial statement effects $[$LO$14-2]$

When Patey Pontoons issued $6\%$ bonds on January $1,2021,$ with a face amount of $$600,000,$ the market yield for bonds of similar risk and maturity was $7\%.$ The bonds mature December $31,2024(4$ years$).$ Interest is paid semiannually on June $30$ and December $31.($FV of $$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:

Determine the price of the bonds at January $1,2021.$

Prepare the journal entry to record their issuance by Patey on January $1,2021.$

Prepare an amortization schedule that determines interest at the effective rate each period.

Prepare the journal entry to record interest on June $30,2021.$

What is the amount related to the bonds that Patey will report in its balance sheet at December $31,2021?$

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.$)$

Prepare the appropriate journal entries at maturity on December $31,2024.$

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Req $1,$Req$2,$Req$3,$Req $4,$Req $5$ and $6,$Req $7]]$

Determine the price of the bonds at January $1,2021.($Round final answers to the nearest whole dollar.$)$

$\backslash$table$[[$Table values are based on:$,],[n=,8],[i=,3\mathrm{.}5\%$