Exercise 14-9 (Algo) Issuance of bonds; effective interest; amortization schedule; financial statement effects (L014-2) 036 When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $640,000, the market yield for bonds of similar risk and maturity was 11. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (EV of $1. PV of S1. EVA $1. PVA of $1. FVAD of S1 and PVAD of S1) (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 ihterest 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 Answer is not complete Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req4 Reg 5 and 6 Reg 7 Determine the price of the bands at January 1, 2021. (Round final answers to the nearest whole dollar) Prev 1 of 5 Next > tv WA X W 1 3. WHOLD WOHTUU IL CIOCU W wie vuurovey wpUILD VILE SCUOLELUID, LV4 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 Answer is not complete. 3:36:16 Complete this question by entering your answers in the tabs below. Req4 Regi Reg 2 Req3 Reg 5 and 6 Reg 7 Prepare the journal entry to record their issuance by Patey on January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round Intermediate calculations and final answers to the nearest whole dollar) No Date General Journal Debit Credit 1 January 01, 2021 Cash 636,8583 Discount on bonds payable 4,142 Bonds payable 140,000 (Real Rega > Pro 1 of 5 Next > B A 3 x SOS 1 Req1 Req 2 Reg 3 Req 4 Reg 5 and 6 Reg 7 Prepare an amortization schedule that determines interest at the effective rate each period. (Round intermediat and final answers to the nearest whole dollar.) oints Cash Interest Bond Interest Expense Discount Amortization Carrying Value 03:36:04 $ Semiannual Interest Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 06/30/2024 12/31/2024 Total 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 256,000 34,972 s 35,136 35,308 X 35,490 % 35,682 35,885 X 36,098 11,571 260,142 $ 2,972 3,136 3,308 3,490 3,682 3,885 4,098 (20,429) 4,142 635,858 638,830 641,966 645,274 648.764 652.446 656,331 660,429 640.000 $ $ $ Mc Graw Draw 5 SB Alavt Answer is not complete. Complete this question by entering your answers in the tabs below. 5:49 Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 and 6 Reg 7 Prepare the journal entry to record interest on June 30, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) General Journal Debit Credit June 30, 2021 Interest expense 31,855 Discount on bonds payable 25,600 No Date 1 Cash
