Journal Entries Needed:

• Record the issuance of the bonds by Cromley - February 1 2021
• Record the Bond investment by Barnwell - February 1 2021
• Record the payment of interest for Cromley Company - July 31 2021
• Record the accrued interest for Cromley Company - December 31 2021
• Record the payment of interest for Cromley Company - January 31 2022
• Record the payment of interest for Cromley Company - July 31 2022
• Record the accrued interest for Cromley Company - December 31 2022
• Record the payment of interest for Cromley Company - January 31 2023
• Record the receipt of interest for Barnwell Company - July 31 2021
• Record the accrued interest for Barnwell Company - December 31 2021
• Record the receipt of interest for Barnwell Company - January 31 2022
• Record the receipt of interest for Barnwell Company - July 31 2022
• Record the accrued interest for Barnwell Company - December 31 2022
• Record the receipt of interest for Barnwell Company - January 31 2023

On February 1, 2021, Cromley Motor Products issued 10\% bonds, dated February 1 , with a face amount of $60 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 12%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $60,000 of the bonds as a long-term investment. The fiscal years of both firms end 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: 1. Determine the price of the bonds issued on February 1,2021. 2-a. Prepare amortization schedules that indicate Cromley'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 Cromley and Barnwell's investment on February 1 . 4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31,2023. Prepare amortization schedules that indicate Cromley's effective interest expense for each interest period during the term to maturity. (Do not round intermediate calculations. Enter your answers in whole dollars.) Prepare amortization schedules that indicate Barnwell's effective interest revenue for each interest period during the term to maturity. (Do not round intermediate calculations. Enter your answers in whole dollars.)